Dr. Swarnim Wagle assumed the finance ministry on March 27, 2026. Drawing on his experience at the World Bank and the National Planning Commission, he struck a more hopeful tone upon taking office. He promised to implement the recommendations of the high-level Economic Reform Suggestion Commission, abolish the Revenue Investigation Department and amend 15 laws. He introduced 100-day, bi-annual, and annual action plans. He aimed for a historically transformative budget. He also repeatedly spoke of converting Nepal into a $100 billion economy within five to seven years, targeting sustained annual growth of around 7 percent. Apparently, the goals were quite ambitious, and his first test came with the Finance Bill. Days after he presented the FY2026/27 budget on May 29, the bill underwent several revisions, indicating a lack of groundwork during the budget preparations. The ad hoc changes affected key tax provisions, including VAT exemptions for electricity and for transactions between hydropower producers and the Nepal Electricity Authority. The controversy arises not only from frequent revisions but also from the due process followed. Nepal's House regulations do not clearly specify whether the ministry can change tax rates after a bill has been tabled. Opposition lawmakers seized the opportunity to call for a parliamentary probe. At a Public Accounts Committee hearing, FM Wagle dismissed critical media coverage and suggested that some MPs lacked the basic knowledge to properly evaluate the budget. This incident raises questions about Dr. Wagle's political skills: can he move from explaining a policy's technical details to convincing those who need to approve and carry it out? The FM's most important test is whether the newly unveiled budget can deliver the ambitious growth targets and address the developmental bottlenecks. The World Bank and the ADB have often stressed the need for more private investment, better infrastructure, stronger governance, and massive administrative reforms, including optimal tax policies to boost productivity and create jobs. Nepal's growth prospects depend not only on public spending but also on improving the investment climate, strengthening implementation capacity, and making the private sector play a vital role in the economy. These are long-standing issues in Nepal's public finance and development that FM Wagle was well aware of. However, the new budget largely failed to generate much excitement among the business community, policy watchers, and the public. The World Bank notes that the budget is expected to focus on fiscal discipline, structural reform, and better execution. While these areas align with some aspects of the new budget, the global bank raises critical concerns about debt management, low capital use, and the weakness of the private sector that is supposed to be the job-creating engine. On the positive side, the new budget adopts a reform-oriented approach to some level, prioritising administrative efficiency, targeted tax incentives, and project rationalisation. This shift from the prior budget emphasises influencing economic behaviour rather than relying solely on fiscal spending. However, they were simply not enough to generate significant improvements in the macro-outlook. The FM's proposed restructuring of the failed health-insurance system is a welcome step. He has proposed a two-track model: state-funded basic care for poorer citizens and contribution-based insurance for those who can afford it. The government has also set a target of reaching 90 percent population coverage within three years. The plan sounds good, but the execution has been nothing short of a train wreck. Tackling it now is politically harder than ignoring it. Dr. Wagle finds himself in an awkward spot. The $100 billion target economy is another key test of whether set ideas and budget are aligned. This ambitious plan requires sustained annual growth of about 7 percent for a minimum of five years. The target is not impossible in principle. However, given the current growth rate of 3.5%, doubling that figure in about five years is simply not credible. His proposed so-called 'equity fee' tax on private education and health drew a flurry of disapproval, which ultimately led PM Shah to announce its suspension on social media. Minister Wagle later clarified that the tax had been 'postponed' and that 'what the PM says is final.' Additionally, multiple news outlets recently reported concerns within PM Shah's circle about his handling of the stock market, emphasis on foreign borrowing, and the effectiveness of the budget. Other media reports highlight that PM Shah held a series of meetings with business communities without the finance minister present. It is normal for a prime minister to meet with the business leaders. But holding several meetings without the finance minister is undoubtedly unusual. Despite all this, the FM's real test is yet to come because, after all, what matters is the result. Is revenue rising by a large margin? Is capital spending improving significantly? Is private investment rising? Are more people getting jobs? Is inflation under control? Is the business environment more stable? Can Nepal attract more foreign investment and make real progress towards leaving the Financial Action Task Force's gray list? Is the government creating enough opportunities to slow the number of young Nepalis leaving the country? And maybe, most importantly, is the general public comfortable with the state of the economy? These are the questions that will determine whether the celebrated technocrat in the key finance portfolio will succeed. Dr. Wagle could still navigate the challenges and become the reformer Nepal is hoping for. However, he should be mindful of the urgency. Dr Paudel is an economic consultant for a US-based financial institution and a finance professor at Southern New Hampshire University