Tuesday, June 30, 2026

Metropolitan Cities unveil budget for FY 2026/27

Kathmandu, June 24:

Six metropolitan cities in Nepal have announced their budget for the Fiscal Year 2026/27. As per the constitutional provision, all local bodies should announce the budget for the next year by Asar 10, June 24 for this year. Most of the sub-metropolitan cities, municipalities and rural municipalities also announced budgets with regular and innovative programmes and projects.

The local bodies have largely depended on the federal grants for their development works, and even for the recurrent expenditures.


Lalitpur: Rs. 7.48 billion

Lalitpur Metropolitan City has unveiled a budget of Rs. 7.48 billion for the upcoming fiscal year 2026/27.

Deputy Mayor Manjali Shakya presented the annual income and expenditure estimates of the metropolis at the 9th Municipal Assembly on Wednesday.

The budget for the next fiscal year is slightly higher than the budget presented for the current fiscal year. The metropolis had allocated Rs. 7.47 billion for the fiscal year 2025/26.

The metropolis has proposed an allocation of Rs. 3.25 billion for recurrent expenditure, emphasising prudent, transparent, and justified public spending. The allocation for recurrent expenditure is 9 per cent higher than that of the current fiscal year.

Meanwhile, around Rs. 4.24 billion has been set aside for capital expenditure. This is lower than the Rs. 4.51 billion allocated in the current fiscal year, reflecting a reduction of about Rs. 270 million, or 6 per cent.

It is estimated that Rs. 3.35 billion will be collected from internal sources, including internal revenue, land revenue, entertainment tax, and other taxes. In addition, Rs. 60 million is expected to be mobilised through public participation in development projects.

The metropolis expects to receive Rs. 1.36 billion from the federal government and Rs. 176.39 million from the provincial government under various grants and revenue-sharing arrangements.

Under intergovernmental transfers and delegated programmes, the metropolis anticipates receiving Rs. 1.06 billion.

A further Rs. 1.47 billion required to finance the proposed budget will be covered through available cash reserves.

Presenting the budget, Deputy Mayor Shakya said that priority has been given to institutional strengthening, sustainable urban development, employment generation, and heritage preservation.

Among the top priorities are institutional strengthening and good governance, with a focus on improving accountability, transparency, and the effectiveness of municipal administration.

The city has also emphasised sustainable infrastructure and urban development to support planned urbanisation and improve civic amenities.

The budget has set a target of ensuring access to clean drinking water for every household, expanding the use of technology, and delivering citizen-friendly, accountable, and technology-driven public services.


Birgunj: Rs. 4.42 billion

Our Parsa correspondent Dipak Gautam adds: Birgunj Metropolitan City has unveiled a budget of Rs. 4.42 billion for the fiscal year 2026/27 prioritising infrastructure development, education, and healthcare services.

Municipal Executive Member Jagat Sah Kanu, on behalf of Acting Mayor Imtiyaj Alam, presented the budget at the 20th Municipal Assembly on Wednesday.

The new budget for the next fiscal year is Rs. 730 million higher than the budget for the current fiscal year 2025/26.

Of the total budget, about Rs. 2.40 billion (54.3 per cent) has been allocated for recurrent expenditure, while Rs. 1.97 billion (44.6 per cent) has been earmarked for capital expenditure.

Likewise, Rs. 50 million (1.1 per cent) has been allocated for financial management.

To finance the budget, the metropolitan city expects to receive Rs. 1.98 billion through federal fiscal transfers, Rs. 1.48 billion from internal revenue, and Rs. 246.88 million through federal revenue sharing.

In addition, Rs. 50 million will come from provincial fiscal transfers, while Rs. 16.7 million is expected through provincial revenue sharing.

The city also plans to generate Rs. 450 million from land registration fees and utilise Rs. 46.9 million from the previous year's cash balance.

Furthermore, Rs. 150 million will be secured from the Town Development Fund to support the implementation of various development projects and programmes outlined in the budget.

During the assembly, Acting Mayor Alam also presented the municipality’s annual policies and programmes.

Alam said that education and healthcare services, urban sanitation management, forest and environmental conservation, agriculture, tourism and industry promotion, quality physical infrastructure, and technology-based public service delivery are the major priorities of the new budget.

The metropolis has allocated Rs. 890.6 million for an Integrated Drinking Water and Sewerage Management Project while Rs. 150 million is allocated for the development of an integrated solid waste management system.

Similarly, Rs. 130 million has been earmarked for the reconstruction of the metropolitan administrative building and ward offices in Ward Nos. 10, 14, and 26, which were destroyed in a fire during the Gen Z movement.

 

Biratnagar: 3.56 billion

Meanwhile, our Biratnagar correspondent Shashidhar Parajuli adds: Biratnagar Metropolitan City has unveiled a budget of Rs. 3.56 billion for the Fiscal Year 2026/27.

Presenting the policies, programmes and budget at the metropolitan city's 18th Municipal Assembly, Deputy Mayor Shilpa Niraula Karki said priority had been given to social development and technology alongside physical infrastructure.

The metropolitan city has allocated Rs. 762.87 million for recurrent expenditure, stating that the major portion of the budget has been focused on development works and social security.

For the upcoming fiscal year, the metropolis has set a target of collecting Rs 1.27 billion from internal sources.

It is estimated to receive Rs. 334.3 million through fiscal equalisation grants from the federal government, Rs. 732.9 million through conditional grants and Rs. 5.6 million in capital grants.

Deputy Mayor Karki said the provincial government would provide Rs. 36.25 million in equalisation grants and a total of Rs. 142.674 million through other grants.

The budget has outlined new initiatives in the field of information technology. Under social development, funds have been allocated for the concept of ‘Mega Schools’, capable of accommodating between 5,000 and 10,000 students, and for the operation of ‘booster classes’ aimed at supporting academically weak students.

In the health sector, Biratnagar aims to be a fully institutional delivery metropolis, where free portable ultrasound scans and ANC profile tests will be provided to pregnant women.

Likewise, at the infrastructure front, the metropolitan city has allocated Rs. 435.632 million for ward-level projects. Rs. 150 million has been earmarked for flagship projects and multi-year contracts, Rs. 100 million for maintenance works and Rs. 10 million for a matching fund.


Bharatpur: Rs. 5.51 billion

Earlier, on Monday, Bharatpur Metropolitan City unveiled a budget of Rs. 5.51 billion for the FY 2026/27. The size of next year’s budget is larger by about Rs. 3 million against that of this year’s budget.

Acting Mayor Chitrasen Adhikari presented the budget at the metropolis’ 19th Municipal Assembly.

For the next fiscal year, the metropolis has projected Rs. 2.04 billion in internal revenue, including proceeds from land registration and the sharing of royalties from mines and mineral resources. It expects to receive Rs. 2.17 billion through intergovernmental fiscal transfers from the federal and provincial governments, Rs. 331.2 million from the federal revenue-sharing mechanism, and Rs. 134 million from revenue sharing by the Bagmati Provincial Government.

Other projected sources of income include Rs. 40 million from the Town Development Fund, Rs. 30 million through public participation, Rs. 745 million in bank balances, and Rs. 19.3 million from the Road Board Nepal.

The metropolis has estimated expenditure of Rs. 1.25 billion under intergovernmental delegated authority and social security schemes.

It has allocated Rs. 600 million to complete projects left unfinished in the previous and current fiscal years and to clear outstanding payments.

Likewise, Rs. 140 million has been allocated for the Gautam Buddha Cricket Stadium, while Rs. 90 million has been set aside for ongoing construction work, and Rs. 117.5 million for education-related programmes.


Pokhara: 7.15 billion

Similarly, Pokhara Metropolitan City presented a budget of Rs. 7.15 billion for the upcoming fiscal year 2026/27. Deputy Mayor Manju Devi Gurung tabled the budget during the 19th municipal assembly on Friday.

Of the total allocation, 55 per cent has been set aside for recurrent expenditure, while 45 per cent is allocated for capital expenditure, according to the budget statement. The metropolis is expected to receive Rs. 3.18 billion in fiscal transfers from the federal government.

This includes Rs. 2.61 billion in conditional grants, Rs. 55 million in special grants, Rs. 18.2 million in equalisation grants, and Rs. 49.37 million in supplementary grants.

From the provincial government, the metropolis is projected to receive Rs. 91.54 million in total financial transfers, including Rs. 81.536 million in equalisation grants, Rs. 6 million in supplementary grants, and Rs. 4 million in special grants from Gandaki Province.

In terms of revenue sharing, the metropolis has estimated Rs. 343.47 million from the federal government, Rs. 40.9 million from provincial sources, and Rs. 1.31 billion from local revenue sharing. It is projected that Rs. 2.48 billion will be received from internal sources.


Kathmandu: 25.88 billion

Likewise, Kathmandu Metropolitan City (KMC) announced a Rs. 25.88 billion budget for fiscal year 2026/27, on Thursday, June 18. It prioritised infrastructure, environment, education, good governance, employment and heritage conservation.

Acting Mayor Sunita Dangol presented the budget at the 19th Municipal Assembly. Of the total amount, Rs. 25.13 billion will come through the municipal consolidated fund and Rs. 750 million from external liabilities. KMC expects Rs. 20.18 billion from internal revenue and bank balance and Rs. 4.93 billion from federal and provincial grants and revenue sharing.

Infrastructure received the largest allocation of Rs. 15.31 billion, followed by office operations and administration with Rs. 4.71 billion. Social development has been allocated Rs. 2.42 billion, good governance Rs. 2.13 billion and economic development Rs. 541.8 million.

Major allocations include Rs. 2.53 billion for heritage conservation, Rs. 1.71 billion for education, Rs. 1.22 billion for environmental management, Rs. 700 million for health services, Rs. 430 million for greenery promotion, Rs. 410 million for information technology and Rs. 360 million for disaster management.

The city also announced tax incentives, including discounts for new taxpayers and reduced rental tax rates.

Published in The Rising Nepal daily on 25 June 2026.   

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