KATHMANDU, June 16: Two weeks after the federal government unveiled its national budget, all seven provinces have presented their budgets for fiscal year 2026/27, amounting to a combined total of approximately Rs 293 billion.
Most provinces have prioritized physical infrastructure development, while also allocating significant resources to agriculture, tourism, health, education, information technology, employment generation, and social development.
The Constitution has mandated all seven provincial governments to announce their budget on June 15 (Asar 1) every year. The budget announcement date for the local governments is June 24 (Asar 10).
The Bagmati Province has unveiled a budget of Rs 67.93 billion, the largest among all provinces, for the upcoming fiscal year 2026/27, prioritizing infrastructure development, good governance, employment generation, and the expansion of digital services. The provincial government has allocated Rs 22.96 billion for recurrent expenditure and Rs 43.97 billion for capital expenditure.
Under the infrastructure sector, the provincial government has adopted a “repair first, construction later” policy, allocating Rs 740 million for road maintenance, Rs 7 billion for provincial pride road projects, and Rs 2 billion for drinking water projects.
For digital services, the budget includes plans to develop a crime monitoring system through CCTV cameras in public areas, provide transport-related services online, and manage vehicle licence printing and distribution at the provincial level.
What is missing in budget for agriculture?
Koshi Province has presented a budget of Rs 40.45 billion for the upcoming FY. It has allocated Rs 13.97 billion (34.55 percent) for current expenditure. Capital expenditure has been set at Rs 30.76 billion (51.32 percent), while Rs 15 million has been allocated for financial management.
The Madhesh Province government has unveiled its annual expenditure plan estimate of Rs 41.13 billion for FY 2026/27. The new FY's budget is less by around 13 percent as compared to the current FY. The Madhes Province government had implemented a budget of Rs 46.58 billion in the current FY 2024/25.
Of the total budget for the next FY, Rs 14.66 billion has been allocated towards recurrent expenditure and Rs 26.47 billion towards capital expenditure.
The Madhesh Province government has announced that it will not purchase any vehicles in the upcoming fiscal year as part of measures to control recurrent expenditure. In the budget, the Madhesh government has given top priority to production growth, infrastructure development, modernization of the agriculture sector, expansion of health services and social security, among others.
The Lumbini Provincial Government has presented an annual budget of Rs 37.38 billion for the upcoming fiscal year in the Provincial Assembly on Monday. The provincial government had brought a budget of Rs 38.91 billion for the current fiscal year 2082/83.
Of the presented budget, Rs 22.71 billion has been allocated for capital and Rs 11.11 billion for recurrent expenditure. The budget has planned to implement the long-term vision of 'Prosperous Lumbini, Happy Citizens'.
The government has stated that through the upcoming year's budget, it has prioritized strengthening the provincial structure, institutional development of the federal democratic system, strengthening the provincial economy, good financial governance, expanding public and private sector participation, and economic prosperity.
The Gandaki Provincial Government has unveiled a budget of 32.99 billion for the upcoming fiscal year 2026/27. Of the total budget, Rs 20.26 billion has been allocated for capital expenditure, which is 60.68 percent of the total budget. Similarly, Rs 12.72 billion has been allocated for recurrent expenditure, a 38.56 percent of the total allocation. Likewise, Rs 250 million has been allocated for financial management.
In the budget brought by the Gandaki Provincial Government, issues ranging from selfie bridge in Fewa, glass bridge in Rupatal, production and branding of home-made liquor, legalization of marijuana cultivation for medicinal and industrial purposes, as well as its production, research and processing have been prioritized.
The government has said that it will build infrastructure in tourist destinations. Gandaki's budget includes running tourism promotion programs in partnership with the tourism board and the private sector. The government's budget has prioritized the campaign "Let's go to Gandaki and enjoy tourism."
Similarly, the Karnali Province government has brought a budget of Rs 35.39 billion for the upcoming fiscal year, which is seven percent more than that of the current fiscal year.
The government has estimated that Rs 8.6 billion will be spent on recurrent and Rs 20.74 billion on capital expenditure. Similarly, the government has allocated Rs 500 million for financial management and Rs 5.54 billion for fiscal transfer.
The Karnali provincial government is going to run the ‘One Local Level, One Agricultural School’ program. The provincial government will conduct soil testing of farmers in the province through a program called ‘Healthy Soil, Sustainable Production.’
Sudurpaschim Province has announced a budget of Rs 38.50 billion, with priorities similar to other provinces: roads, bridges, drinking water, irrigation, energy, agriculture, tourism, health, education, and youth employment.
Despite differences in focus, provinces broadly emphasized infrastructure development, agriculture productivity, tourism promotion, health service expansion, education reform, IT advancement, and youth employment.
