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.   

US returns two recovered antiquities to Nepal

Kathmandu, June 24

The Consulate General of Nepal in New York has received two antique Nepali statues, Padma Pani and Nrityadevi, from the New York County District Attorney's Office.

The formal transfer of ownership to the Government of Nepal took place during a handover ceremony at the consulate, where Dadhiram Bhandari, Consul General of Nepal, and Matthew Bogdanos, Chief of the Antiques Trafficking Unit at the Manhattan District Attorney's Office, signed Minutes of Concurrence.

The first artefact, a 13th-century bronze figure of Padma Pani, originally belonged to Tham-Bahil (Vikramashila Mahavihara, Bhagwan Bahal) in Kathmandu. The last known photograph of the statue at its original temple site was taken in 1971, and it is believed to have been smuggled into the United States between 1971 and 1977, the Consulate informed in a statement on Wednesday.

The second artefact is a 16th-century wooden statue of the Nrityadevi (Goddess of Dance), which originated from I-Baha Bahi in Patan. Believed to have been smuggled into the USA between 1969 and 1983, the statue was seized from the Metropolitan Museum in New York.

“The recovery of these sculptures was the result of a joint effort by the New York County District Attorney’s Office, US Homeland Security Investigations, and various partner institutions,” read the statement.  

Speaking on the occasion, Bhandari noted that the cooperation between Nepal and the United States in addressing the illicit trafficking of cultural property demonstrated an international partnership committed to protecting shared heritage. Acknowledgement was also given to the Nepali diaspora and community organisations, including Newa Guthi, New York, for their ongoing support in protecting Nepal's cultural assets.

The two antiquities are scheduled to be packed and flown to Nepal on Thursday, June 25. The transport and logistics are being coordinated by the consulate and Newa Guthi, New York, with representatives from the organisation accompanying the shipment.

Upon arrival in Kathmandu, the statues will be handed over to the Department of Archaeology and other authorities for conservation and eventual restoration to their original locations. 

Published in The Rising Nepal daily on 25 June 2026.   

EU willing to work with Nepal for air safety

Kathmandu, June 24

The European Union (EU) said on Tuesday that it wants to continue working with Nepal to help the latter in achieving air safety.

“The EU and its Member States are keen to continue working side by side with the Government of Nepal to help achieve the level of safety that Nepali citizens and travellers deserve,” Chargé d’affaires at the Delegation of the EU to Nepal Thomas Millar said while speaking at the third module of the Regional Aviation Safety Programme (RASP) being held in Kathmandu from Tuesday.

“Both the EU and its Member States are already providing technical assistance and have worked closely with all stakeholders to support progress,” he said.

The three-day event, which kicked off on Tuesday, is jointly organised by the Civil Aviation Authority of Nepal (CAAN) and ATR.

The module will focus on ‘Crew Training and Operational Standards’, addressing the human and procedural dimensions of flight operations, including decision-making, operational resilience and fatigue management, the Delegation of the EU informed in a statement.

Noting that air safety is a priority for Nepal, Millar said, “We have taken note of the recent remarks by the Finance Minister in his budget speech, aiming to address the concerns of the European Commission (EC). We also appreciate the recent submission of the full package concerning the implementation of the Corrective Action Plan.”

According to him, officials in the Directorate General for Mobility and Transport (DG MOVE), the EC department responsible for developing sustainable, safe and efficient transport and mobility policies in the EU, will review the Corrective Action Plan in the coming months.

Nepal has been on the EU’s air safety concern list since 2013, which bars Nepali airlines from flying to, from and within the EU. This has seriously impacted Nepal’s tourism and international trade since then.

Following the launch of a series of aviation cooperation activities earlier this year, the EU has continued its partnership with Nepal and South Asia through two new regional initiatives taking place in Kathmandu under the EU–South Asia Aviation Partnership Project (EU–South Asia APP).

Over two weeks, aviation authorities, airlines, industry representatives and technical experts from across South Asia are gathering in Nepal to exchange experience, strengthen professional networks and discuss practical approaches to enhancing aviation safety.

The EU Delegation said that by bringing together regulators, operators and industry representatives, the programme aims to foster practical and sustainable approaches to aviation safety.

The second activity, which takes place from 29 June to 2 July, will also host a Regulatory Updates in Continuing Airworthiness Workshop under the South Asia Regional Initiative (SARI). The workshop will examine recent developments in EU Aviation Safety Agency (EASA) regulations and modern oversight concepts, supporting authorities and industry in implementing the evolving international requirements.

Together, these activities demonstrate the evolution of the EU–South Asia Aviation Partnership Project from individual technical exchanges towards a more structured and sustained programme of regional cooperation.

“They also reinforce Nepal's growing role as a platform for aviation dialogue in South Asia and illustrate the European Union's commitment to supporting aviation stakeholders through practical, demand-driven and long-term partnerships,” read the statement.

Nepal-Spain business forum organised in Madrid

Kathmandu, June 23

Aiming to bridge the gap between investors and businesspersons from Spain and the government and the private sector of Nepal, the Embassy of Nepal in Madrid organised the ´Nepal-Spain Business Forum 2026´ on Monday.

Speaking at the event, Chargé d´affaires a.i. Purak Adhikari introduced Nepal´s industries as generational enterprises operating on ethically sourced materials using indigenous technology.

Navin Raj Sharma, acting Executive Director of the Trade and Export Promotion Centre, presented the statistics of Nepal-Spain textile trade while highlighting the opportunities of various Nepali textile articles in the Spanish market. He also presented a range of Nepali textile and garment articles deemed most promising for Spanish consumers.

Likewise, Govinda Ghimire, president of the Federation of Export Entrepreneurs Nepal (FEEN), and Deva Nanda Sarawagi, vice president of FEEN, emphasised the competitive advantages of Nepali textile and jewellery products, particularly those made from premium natural fibres such as Chyangra wool, Himalayan sheep wool, hemp, and nettle.

They also highlighted the growing demand for Nepali handmade silver jewellery, prayer beads, and traditional ornaments that have strong appeal in niche international markets.

Similarly, Pashupati Dev Pandey, President of the Garment Association of Nepal, outlined the recent growth of Nepal’s garment sector, noting the positive impact of legal and policy reforms.

Addressing the forum, Luis Rodriguez, Deputy Director of International Relations at the Chamber of Commerce of Spain, informed that Spanish consumers are increasingly receptive to unique international products and expressed confidence that stronger business-to-business partnerships would further enhance Nepal-Spain commercial relations.

NICCI, GITA sign MoU to promote trade partnership

Kathmandu, June 23

The Nepal-India Chamber of Commerce and Industry (NICCI) has signed a Memorandum of Understanding (MoU) with Global Investment and Trade Advisors LLP (GITA), India, to promote trade, investment, institutional partnerships, and economic cooperation between Nepal and India.

“It is a shared commitment to strengthening cross-border business linkages, facilitating knowledge exchange, and creating new opportunities for investors and enterprises in both countries,” NICCI said in a statement.

Under the agreement, NICCI and GITA will work together on a range of initiatives, including business delegations, investment outreach programmes, sectoral engagements, policy dialogues, roadshows, and stakeholder consultations.

According to NICCI, the collaboration is designed to foster structured engagement between businesses, investors, chambers of commerce, government agencies, and development institutions, while encouraging greater participation in emerging economic opportunities across key sectors.

The MoU was signed by Marshal Rathour, Director at NICCI, and Priya Rawat, Managing Partner of GITA. Speaking on the occasion, representatives from both organisations emphasised the importance of stronger institutional cooperation in advancing Nepal-India economic relations. 

Published in The Rising Nepal daily on 24 June 2026.   

Govt. set to formulate law for trade secrets

Kathmandu, June 21

The government is set to formulate laws to govern trade secrets and geographical indications so that the intellectual property regime in the country can be strengthened.

Publishing the details of the activities for the upcoming Fiscal Year 2026/27, which will begin on July 17, the Ministry of Industry, Commerce and Supplies (MoICS) informed that it will be implemented under the Nepal Trade Integration Strategy (NTIS).

The Department of Industry will conduct interaction programmes on industrial property across seven provinces. It is expected to understand the status of awareness about industrial property and demands from the private sector for the same.  

Currently, copyrights in Nepal are governed by the Copyright Act 2002, which covers literary creations in literature, music, art, computer programmes and dramatic works. Likewise, trademarks, patents and industrial designs are governed by the Patent, Design and Trademark Act, 1965. It covers words, symbols, or logos of businesses.

The private sector has been demanding an update to the Trademark Act, incorporating the latest needs of businesses and entrepreneurs.

The Ministry is also set to conduct informative training for producers, traders and exporters on the existing certification for goods, geographical indications, sustainability, product standards and the implementation methods for voluntary standards.

Likewise, procedures will be formulated, and institutional capacity will be developed for safeguards, anti-dumping and countervailing legislation.

The MoICS also announced a plan for intergenerational transmission of traditional handicraft skills. “Skill development training will be conducted in a cost-sharing partnership with representative associations and organisations of the private sector to produce exportable goods aligned with international market demand through documentation, transfer, and intergenerational transmission of traditional handicraft skills,” read the document.

Likewise, warehouses for the storage of tea and large cardamom (alainchi) will be constructed in a public-private-partnership model, sharing cost with entrepreneurs from the respective sectors.

A programme will be designed and executed for the technical facilitation and infrastructure development to enhance and upgrade small-scale industries to meet food safety standards.

The Industry Ministry is also set to review the achievements of the technology transfer agreements made with various stakeholders and governments in the past. 

Published in The Rising Nepal daily on 22 June 2026.   

Govt. serious about resolving tea export barriers, says FM Khanal

Kathmandu, June 19:  

Minister for Foreign Affairs Shishir Khanal said that the government is seriously concerned about the obstacles emerged in Nepal’s tea exports and that diplomatic dialogue is ongoing with the Indian side on the matter.

“We have already initiated discussions with Indian authorities to resolve the problems seen in Nepal’s tea exports. Concrete diplomatic efforts are being made to find a practical solution to the issue,” he said with the delegation of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) at the Ministry of Foreign Affairs (MoFA) on Thursday.

According to information received from the Indian side, a resolution is expected soon, he said while noting that discussions are being held with the Indian side for long-term solutions to similar problems affecting the export of tea and other goods.

The FNCCI delegation, led by its president Anjan Shrestha, had urged FM Khanal to take diplomatic initiatives to resolve the existing barriers and complexities in tea exports to India. It drew the attention of the minister to the difficulties faced by Nepal’s tea industry due to new arrangements introduced by the Indian Tea Board.

The FNCCI, in a statement, said on Friday that the recently issued Standard Operating Procedure (SOP) by the Tea Board of India has created further complications for Nepal’s tea exports. It stressed that there are no quality issues with Nepali tea and called for the matter to be raised strongly in bilateral trade mechanisms with the Indian side.

Shrestha said that as the tea sector, which has an annual turnover of around Rs. 12 billion to 14 billion, is in crisis, it would affect the wider economy and the livelihoods of millions. He urged the minister to resolve the issue as soon as possible.

The tensions began with TBI implementing mandatory laboratory testing of Nepal’s all tea consignments from May 1 this year. For the first three weeks, Indian authorities conducted random sampling, and the situation remained relaxed.

But after that, authorities in India collected samples of each consignment and sent them for testing, but no lab reports were issued, leaving the product stranded in Kolkata.

Exhibiting protests, 83 tea factories in Ilam and Jhapa halted operations on Thursday. Likewise, a delegation of the Nepal Tea Producers Association came to Kathmandu to find a solution with the government. More than 1,300 tonnes of tea produced in Nepal is stuck in the warehouses in Nepal and India.

According to the Association, this is a recurring problem and needs to be resolved once and for all.

The FNCCI also emphasised the need to establish an internationally accredited laboratory in Nepal for long-term solutions.

Deputy leader of the Rastriya Swatantra Party parliamentary party Ganesh Parajuli, and Chair of the Industry Committee at the Parliament Rahbar Ansari, who were present on the occasion, said that both short-term and long-term solutions should be sought for such problems.

Likewise, Commerce Secretary Krishna Bahadur Rawat said that the Ministry of Industry, Commerce and Supplies is also engaging through its channels to facilitate the process and expressed optimism that a positive outcome would be reached soon.

 

60,000 workers affected

According to the Nepal Freight Forwarders Association (NEFFA), with around 120 tea industries nationwide, thousands of farmers, and 50,000 to 60,000 workers directly dependent on the sector, the disruption has negatively impacted Nepal’s export trade, foreign currency earnings, and the overall economy.

Statistics from the National Tea and Coffee Development Board showed that Nepal produced 26,983 tonnes of tea, including orthodox, green tea, and other varieties in FY 2024/25.

Expressing serious concern over the recent complications in tea exports, one of Nepal’s key export commodities, and the procedural barriers seen in the Indian market, it said the situation has led to the closure of tea industries, particularly in eastern Nepal, and affected hundreds of tea gardens.

“Processed tea exported from Nepal to India has been held in warehouses for a long time on the pretext of laboratory testing and various technical procedures, disrupting production, distribution, and the entire export chain of the Nepali tea industry,” NEFFA said in a statement on Friday.

The Association noted that a significant share of Nepal’s total tea exports depends on the Indian market, and such barriers have adversely affected not only exporters and entrepreneurs but also the broader economy.

It urged the government to prioritise the issue and initiate immediate diplomatic efforts, including high-level dialogue with relevant Indian authorities, to remove procedural and technical barriers as soon as possible, ensuring smooth, simple, and uninterrupted trade.

Published in The Rising Nepal daily on 20 June 2026.