Mr Budd held various directorial positions within the Department of Foreign Affairs and Trade including Pacific regional section and Property Tender Unit.
According to DFAT, he has also served as Australia's deputy head of mission in Iraq's capital Baghdad, the South African city of Pretoria and Port Vila, the capital of Vanuatu.
In a statement, Ms Bishop said "Australia and Nepal enjoy a warm relationship underpinned by strong people-to-people links."
The Foreign Minister also highlighted the role played by Nepali student's towards Australia's education sector.
"Nepal is the eighth largest provider of international students to Australia, with over 15,000 Nepalese students enrolling to study in Australia last year", she said.
More than 25,000 Australians are said to have visited Nepal in 2016.
Budd replaces outgoing Ambassador Glenn White, who served in the position since 2013 and helped coordinate Australia's response after Nepal's devastating earthquake in 2015.
