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Nepal's Prime Minister Balen Shah Claims Nepal Has Encroached on Indian Territory, Reigniting Border Dispute
The Nepal-India border issue became a major flashpoint following Prime Minister Balendra Shah ("Balen")'s unprecedented address to Parliament. Breaking from historical precedent, he stated that territorial encroachment was not one-sided, claiming Nepal has also occupied Indian territory in several locations along the 1,751 km border.

Compared to the current fiscal year, Wagle has presented a budget of more than Rs 160 billion this time. The National Planning Commission had set a ceiling of only Rs 18.90 trillion for the upcoming fiscal year, but the ceiling was increased again at the request of the Finance Minister. In the budget presented by Finance Minister Dr. Wagle, who is considered an expert in the world economy, Rs 1270 billion 58 billion or 59.8 percent of the budget has been allocated for current expenditure. Similarly, Rs 431.10 billion, or 20.3 percent of the total allocation, has been allocated for capital. Rs 422.64 billion, or 19.9 percent of the total allocation, has been allocated for financial management under the heading of paying principal and interest on public debt. This expenditure estimate is about 25 percent higher than the revised estimate for the current fiscal year.
What did Prime Minister Shah say about Kalapani-Lipulekh?

‘You will be surprised to hear a fact that I recently learned only after becoming prime minister. Not only has India encroached on Nepali land, but Nepal has also encroached on Indian land in many places,’ Shah said in parliament.

However, he did not provide further details about which Indian territories Nepal has encroached upon. ‘Now both countries must study the facts and resolve this issue as friendly nations,’ he added.

Shah took the oath of office as Nepal's Prime Minister on March 27 this year. Before that, he was the Mayor of Kathmandu Metropolitan City. He was elected mayor as an independent candidate in 2022.

As mayor, he became controversial after launching a strict crackdown campaign against street vendors. Civil society leaders criticized it. Before entering politics, Shah was a musician who raised issues of corruption and inequality through his creations.

Shah joined the Rastriya Swatantra Party in December 2025. Before that, the then government collapsed under the pressure of the youth movement, and in September 2025, the then Prime Minister Khadga Prasad Oli resigned.

Ravi Lamichhane, a former journalist and founder of the Rastriya Swatantra Party, established about four years ago, is currently a member of parliament. Lamichhane has reached New Delhi for a five-day visit to India on Monday with a program of high-level political and diplomatic talks with Indian Prime Minister Narendra Modi and leaders of the Bharatiya Janata Party (BJP).

“After becoming prime minister, I came to know that not only has India encroached on Nepal’s land, but Nepal has also encroached on India’s land in multiple places,” Shah said, responding to questions in Parliament.

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