Karnali delays
amid political discord
Kathmandu,
June 15
Six out of
seven provincial governments tabled their budgets for the upcoming fiscal year
2025/26, with total outlays ranging from Rs. 31.97 billion (Gandaki) to Rs. 67.47
billion (Bagmati). Despite varying fiscal sizes and priorities, all provinces
emphasised capital expenditure over recurrent spending and aligned their
policies toward infrastructure development, employment generation, and
sustainable growth.
Madhes
allocated the highest proportion (64 per cent) to capital expenditure with an
aim to boost agro-industrial development and youth entrepreneurship, while
Koshi's nearly balanced split between recurrent and capital budgets is said to
have growth approach. Sudurpaschim and Lumbini prioritised agriculture and
tourism alongside physical infrastructure, whereas Gandaki stressed foreign
investment, regional competitiveness, and private sector engagement. Likewise,
Bagmati's focus are scattered across tourism, sports, agriculture and health.
Most of the
provinces rely heavily on federal revenue-sharing, conditional and equalisation
grants, and unspent balances from the current fiscal year. Internal revenue
mobilisation remains modest across all provinces, with some provinces like
Koshi and Gandaki planning to bridge gaps through internal borrowing.
In contrast,
Karnali failed to present its budget due to a political impasse, as the
opposition CPN-Maoist Centre boycotted proceedings over disputes concerning
project transparency.
Koshi:
Rs. 35.88 billion
The Koshi
Provincial government has unveiled a budget of Rs. 35.88 billion for the
upcoming fiscal year 2025/26.
Minister for
Economic Affairs and Planning of Koshi Province Ram Bahadur Magar presented the
budget of the province at the meeting of the Provincial Assembly Sunday.
Of the total
budget allocation, Rs. 18.67 billion (52 per cent) has been allocated under the
heading of recurrent expenditure, Rs. 17.10 billion (47.7 per cent) under the
heading of capital expenditure and Rs. 100 million (0.3 per cent) under financial
management.
Of the total
allocation, Rs. 4.7 billion is allocated for financial transfers to the local
levels.
The annual budget
of the province for the next fiscal year has been increased by Rs. 600 million (1.7
per cent) as compared to the initial budget of the current fiscal
year.
This estimate is
1.7 per cent higher than the current fiscal year's allocation and 12 per cent
higher than the revised estimate, said Minister Magar while presenting the
budget.
The provincial
government has allocated Rs 4.777 billion for financial transfers to the local
level.
The Koshi
government had unveiled a budget of Rs. 35.25 billion for the current fiscal
year.
Of the estimated
sources of expenditure for the coming fiscal year, around Rs. 32.74 billion
will be managed from revenue collection and financial transfer.
The province has
set a target to mobilise Rs. 5.50 billion from the internal revenue of the province,
Rs. 12.39 billion from revenue sharing, Rs. 8.98 billion for fiscal equalisation
received from federal government, Rs. 4.57 billion for conditional grant, Rs. 391
million for supplementary grant, Rs. 557 million for special grant and Rs. 356
million for the royalties, he said.
Of the remaining
shortfall, Rs. 3.13 billion will be spent from the remaining cash balance.
The government has
allocated Rs. 10.57 billion for infrastructure development, Rs. 4.73 billion
for drinking water, irrigation and energy, Rs. 2.18 billion for agriculture and
industry, Rs. 2.97 billion for tourism, forest and environment, Rs. 2.97
billion for education, science and social services, Rs. 3.51 billion for health
and Rs. 960 million for peace and security.
Magar said that
the budget has been prepared with the aim of maintaining high economic growth
of the province by improving education, health, infrastructure development and increasing
agricultural production and reducing migration.
Gandaki: Rs. 31.97 billion
The Gandaki provincial government has presented a budget of Rs.
31.97 billion for the next fiscal year 2025/26.
Minister for
Economic Affairs of Gandaki Province Dr. Tak Raj Gurung presented the budget at
the meeting of the Provincial Assembly.
The provincial
government has allocated around Rs. 12.63 billion (39.5 per cent) under the
heading of recurrent expenditure, Rs. 19.09 billion (59.7 per cent) under capital
expenditure and Rs. 250 million (0.8 per cent) under financial management.
Minister Gurung
said that Gandaki Province would receive Rs. 7.73 billion from the federal
government as fiscal equalisation and Rs. 9.79 billion from revenue sharing.
While presenting
the budget, he estimated that the province would receive Rs. 498 million from
royalty, Rs. 3.35 billion from conditional grants, Rs. 639 million from
supplementary grants and Rs. 498 million from special grants.
He estimated that
the internal revenue of the province will be Rs. 5.45 billion.
There will be a
cash balance of Rs. 2.24 billion from the implementation of the budget for the
current fiscal year, he said.
The Gandaki provincial
government has planned to fill the deficit of Rs. 1.75 billion from internal borrowing.
The size of the
provincial budget has been reduced by Rs. 1 billion for the next fiscal year as
compared to the budget presented for the current fiscal year. The government
had presented a budget of Rs. 32.97 billion for the current fiscal year
2024/25.
The objectives of
the budget are to increase employment and income through sustainable economic
growth, develop quality and modern infrastructure, and create skilled and
productive human capital in modern technology.
Minister Gurung
has said that the Invest Gandaki programme will be implemented as an
intervention programme to build a strong regional economy.
The budget
stresses on job creation and poverty alleviation by attracting foreign
investment in agriculture, tourism, energy, and forestry and mining industries.
Lumbini: Rs. 38.91 billion
The Lumbini
Provincial government has presented a budget of Rs. 38.91 billion for the
upcoming fiscal year 2025/26.
Minister for
Economic Affair and Planning of Lumbini Province Dhanendra Karki has presented
the annual income and expenditure estimates of the province for the next fiscal
year at the meeting of Provincial Assembly Sunday.
Minister Karki
allocated a budget of Rs. 12.01 billion (30.88 per cent) for the recurrent
expenditure, Rs. 23.47 billion (60.32 per cent) for capital expenditure and Rs.
3.42 billion (8.80 per cent) for fiscal transfer to local levels for the next
fiscal year.
The province has
set a target to mobilise Rs. 7.78 billion from the internal revenue of the
province, Rs. 11.86 billion from revenue sharing received from the federal
government and Rs. 415 million from royalties to be received from the federal
government.
Similarly, the
provincial government has estimated to generate revenues of Rs. 2.829 billion
from local levels.
This size of the
budget for the fiscal year 2025/26 has been slightly increased as compared to
the budget of the current fiscal year 2024/25.
The provincial
government had presented a budget of Rs. 38.97 billion for the current fiscal
year.
The Lumbini provincial
government has resolved to achieve the long-term aspiration of a prosperous
Lumbini, happy citizens.
For this, the
budget has prioritised increasing production and productivity in agriculture,
access to quality education and health services, entrepreneurship development,
sustainable infrastructure development, inclusive development with social
justice, and the creation of productive employment, thereby contributing to the
reduction of economic inequality and poverty.
The budget and
programmes have been focused on poverty reduction and economic stability to
achieve high and sustainable economic growth.
The provincial
government has allocated a budget to advance the process of forming the Lumbini
Development Authority to find its own existence in Lumbini, the birthplace of
Buddha.
Finance Minister
Karki said that the budget has been allocated for the Lumbini International
Buddhist Summit with the slogan "Take a step towards Lumbini".
A budget of Rs.
4.72 billion has been allocated for productivity and sustainable development of
agriculture. The goal of the budget is to modernise and commercialise
agriculture and increase its productivity.
Madhes: Rs. 46.98 billion
The government of
Madhes Province has announced the budget of Rs. 46.98 billion for the upcoming
fiscal year 2025/26.
Minister for
Finance of Madhes Province Sunil Kumar Yadav presented the budget of the
province at the meeting of the Provincial Assembly.
The government has
allocated Rs. 16.72 billion for recurrent expenditure and Rs. 30.26 billion for
capital expenditure.
The share of
recurrent and capital expenditure in the budget estimate is 35.89 per cent and
64.11 per cent respectively.
The size of the
budget of the Madhes Province for the next fiscal year has increased by 6.17
per cent as compared to the current fiscal year.
The budget size of
the province for the current fiscal year was Rs. 43.89 billion.
The province has
set a target to mobilise Rs. 9.50 billion resources from the internal revenue
of the province, Rs. 12.73 billion from revenue sharing, Rs. 12.35 billion from
revenue distribution received from the federal government, including Rs. 7.72
billion from fiscal equalisation and Rs. 4.26 billion from conditional grants,
Rs. 394 million from special grant and Rs. 358 million from supplementary grant.
Of the remaining
shortfall, Rs. 10.38 billion will be spent from the remaining cash balance of
the current fiscal year and Rs. 2 billion will be raised from internal
borrowing.
Minister Yadav
said that the budget will focus on maximum utilisation of available resources
to reduce dependence on the federal government by investing in agriculture,
tourism and agro-based industries, agricultural modernization, production and
productivity growth, youth entrepreneurship, innovation and employment generation,
and making the economy of Madhes Province self-reliant, prosperous and strong.
The budget for the
upcoming fiscal year is directed to minimise negative impacts of climate change
by minimising exploitation of natural resources and making sustainable and
equitable use of available natural resources in the process of development and
construction.
The budget is
oriented towards creating an investment-friendly environment and encouraging
the private sector to carry out development and construction works through
public-private partnerships, thereby creating employment opportunities in the
province itself, he said.
The necessary
budget has been allocated for the promotion of the major tourist destinations
of the entire Madhes Province, as well as Janakpurdham, at the international
level, including India, with the main theme of "Visit Madhes".
----------------------------------------------------------
Provincial Budget
Table (Amount in Rs. Billion):
Province
|
Budget (Rs.)
|
Recurrent Expenditure (Rs.)
|
Capital Expenditure (Rs.)
|
Transfers to Local Level (Rs.)
|
Koshi
|
35.88
|
18.67 (52.0%)
|
17.10 (47.7%)
|
4.77
|
Madhes
|
46.98
|
16.72 (35.9%)
|
30.26 (64.1%)
|
-
|
Bagmati
|
67.47
|
26.04 (38.1%)
|
41.43 (61.0%)
|
-
|
Gandaki
|
31.97
|
12.63 (39.5%)
|
19.09 (59.7%)
|
-
|
Lumbini
|
38.91
|
12.01 (30.9%)
|
23.47 (60.3%)
|
3.42 (8.8%)
|
Sudurpaschim
|
33.47
|
10.21 (30.5%)
|
19.83 (59.3%)
|
3.43 (10.2%)
|
----------------------------------------------------------
Sudurpaschim: Rs. 33.47
billion
Minister for Economic Affairs of the Sudurpaschim
Provincial Government Bahadur Singh Thapa unveiled a budget of Rs 33.47 billion
for the FY 2025/26 at the provincial assembly on Sunday.
Out of the total budget, Rs. 10.21 billion (30.49 per
cent) is allocated for recurrent expenditure, while Rs. 19.83 billion (59.25
per cent) has been set aside for capital expenditure. Likewise, Rs. 3.43
billion (10.24 per cent) is allocated for inter-governmental fiscal transfers,
and Rs. 10 million for financial management.
Minister Thapa informed that Rs. 1.65 billion is
expected to be generated through internal revenue mobilisation next year.
Furthermore, the province anticipates receiving Rs. 9.87 billion from
revenue-sharing, Rs. 80 million from royalty-sharing, and Rs. 8.93 billion as
financial equalisation grants - all from the federal government.
The province also expects to utilise Rs. 7.66 billion
in unspent funds from the current fiscal year, Rs. 4.16 billion through
conditional grants, Rs. 602.6 million in supplementary grants and and Rs. 516
million in special grants from the federal government.
The Ministry of Physical Infrastructure Development
received the highest allocation of Rs. 15.40 billion. Minister Thapa also
announced budget provisions for the Chief Minister's Housing Programme.
Rs. 704 million is earmarked for programmes to promote
the cultivation and commercialisation of legumes, oilseeds, spring rice, and
livestock farming. The province aims to develop itself as a seed and seedling
hub, with corresponding budgetary allocations made.
Likewise, Rs. 3.30 billion has been allocated to the
Ministry of Land Management, Agriculture, and Cooperatives. The government has
also earmarked funds for the development of Bankabir as a tourist destination,
and for the conservation of Tharu Maruwa culture and the endangered dolphin
species.
Minister Thapa has earmarked Rs. 2.34 billion for the
Ministry of Industry, Tourism, Forests, and Environment. Likewise, Rs. 230
million has been allocated for establishing one model provincial school in each
of the 32 constituencies.
Rs. 76.5 million has been set aside for MBBS
scholarhips, while the Ministry of Social Development has received a total of
Rs. 7.07 billion. The Ministry of Internal Affairs and Law has been allocated
Rs. 360.4 million.
Bagmati: Rs. 67.47
Minister for
Economic Affairs and Planning of the Batmati Province, Kundan Raj Kafle,
announced a budget of Rs. 67.47 billion for FY 2025/26. This marks an increase
of Rs. 3 billion compared to the current FY's budget of Rs. 64.54 billion.
For
the upcoming year, Rs. 26.04 billion (38.06 per cent) is allocated for
recurrent expenditure, while Rs. 41.43 billion (61.04 per cent) has been
earmarked for capital expenditure. To meet the expenses, the provincial
government has set a target to collect Rs. 28.87 billion through taxes and Rs.
6.79 billion from other sources.
Presenting the
budget at the Bagmati provincial assembly, Minister Kafle said that Chitwan
would be developed as a tourism hub and a film city will be established at
Dangduge Hill in Dolakha. The minister prioritised agricultural production,
introducing a 'One Ward, One Agriculture' programme.
The
government will manage the market for agricultural produce and arrange
agricultural ambulances. Efforts will be made to boost dairy production,
organise the milk market, and upgrade the powdered milk factory.
The provincial
hospital will be developed as a trauma centre. Free insurance will be provided
for economically disadvantaged citizens. A budget of Rs. 350 million has been
allocated to the Madan Bhandari Academy of Health Sciences.
Likewise,
the ongoing programme at the provincial hospital, which serves as a guardian to
orphaned children, will be continued. The Ministry of Social Development has
been allocated a budget of Rs. 4.35 billion.
In
the sports sector, Rs. 90 million has been allocated for the construction of a
stadium in Godawari of Lalitpur district. Further allocations have been made
for stadiums in Makawanpur and Dolakha, and for the construction of the Gautam
Buddha Cricket Stadium in Bharatpur. Similarly, a multi-purpose sports ground
will be built in each electoral constituency. The Ministry of Sports received
an allocation of Rs. 1.16 billion.
The
government will discourage the opening of new road tracks. Programmes such as
the Janata Aawas and the replacement of thatched roofs will be continued. The
Ministry of Physical Infrastructure has got a budget allocation of Rs. 24.80
billion.
Priority will be
given to lift irrigation projects. The Narayani–Khageri irrigation system will
be further improved. The Ministry of Drinking Water and Irrigation received Rs.
7.28 billion.
Karnali: Budget delayed
Meanwhile, in Karnali,
main opposition CPN Maoist Centre caused delay in the budget presentation.
The CPN Maoist Centre
said that it would not allow the government unless the party was apprised of
projects included in project banks of the provincial government. The Karanli provincial
government decided to include all major projects of the province in the project
banks and allocate the budget accordingly.
But the main opposition
accused the government of not informing them about the budget. Although efforts
were underway to forge consensus, no agreement was reached by 10 pm on Sunday.
Constitutionally,
province governments should unveil budget on Asar 1 (June 15).
(Prepared jointly with Laxman Kafle with inputs from Abinash Chaudhary in Dhangadhi, Shaligram Nepal in Chitwan,
Phadindra Adhikari and Ramesh Poudel in Pokhara, Laxman Paudel in Bhairahawa
and Dharbendra Kumar Jha in Janakpurdham)
Published in The Rising Nepal daily on 16 June 2025.