Finance Minister Dr. Swarnim Wagle has announced a new loan and debt recovery mechanism as part of the federal budget for fiscal year 2083/84, aimed at making the collection process more effective and placing it on a stronger legal footing.

Presenting the budget to a joint session of the Federal Parliament, the Finance Minister said the new system is intended to improve the recovery of outstanding loans and dues, addressing long-standing weaknesses in the collection process. The measure is to be backed by a legal framework to make recovery more enforceable.

The announcement comes against a backdrop of mounting fiscal pressure, with the government grappling with weak revenue collection and rising obligations. Strengthening recovery mechanisms is seen as one route to shoring up state resources without leaning further on borrowing.

The provision forms part of the broader reform-focused budget brought by the Rashtriya Swatantra Party-led government, which has emphasised good governance, economic reform, and institutional strengthening as its guiding principles.