KATHMANDU, June 15: All seven provincial governments are presenting their budgets for fiscal year 2026/2027 on Monday. Governance reform, economic growth, employment, agriculture, tourism, health, education and social justice are expected to dominate the spending plans.
Some provinces are increasing budget sizes; others are trimming expenditures due to fiscal constraints. Officials say the budgets will continue selected popular programs while placing greater emphasis on implementation and productive sectors.
Koshi Province: Bigger budget planned
Koshi Province is preparing a budget of around Rs 40 billion, up from Rs 35.88 billion this fiscal year.
Officials say the focus will be on infrastructure, agriculture, health and education rather than populist programs. Social Development Minister Ram Prasad Mahato said youth employment and support for lower income groups will receive priority.
The province plans to expand its "Capable Daughter" program, aimed at Dalit and marginalized girls in the Tarai, to eight local units. A "study while working" scheme will also be introduced to encourage higher education within Nepal and attract foreign students to Nepali universities.
The government has also pledged to fully implement its project bank system to prevent politically driven projects from entering the budget without proper planning.
Madhesh Province: Budget cut to Rs 42 billion
Madhesh Province is reducing its budget from Rs 48 billion to around Rs 42 billion.
Officials say spending on small and unproductive projects has been cut, with more resources directed toward agriculture and health. Coalition partners have agreed not to include projects costing less than Rs 10 million and to avoid implementing projects through consumer committees.
The province is shifting attention away from infrastructure and toward education, health and agriculture. Long term development plans, poverty reduction and employment generation have been prioritized.
Provincial hospitals are expected to expand services from 12 to 16 categories, while funding will also be allocated for model schools.
Bagmati Province: Budget size largely unchanged
Bagmati Province is preparing a budget of about Rs 66 billion, close to this year's allocation of Rs 67.48 billion.
Province govts unveiling budgets totaling Rs 250 bn today
Provincial lawmakers say the government will focus on employment, production and economic growth. Agriculture modernization, affordable health care, education, digital governance and reduced public spending have been identified as major priorities.
The province does not plan to open new road tracks. Instead, it aims to complete ongoing high return projects and strengthen productive sectors.
Youth entrepreneurship, innovation and startup promotion are expected to receive special attention. The government plans to provide concessional loans, interest subsidies and support programs in partnership with banks, cooperatives and the private sector.
Bagmati also intends to support small and medium enterprises based on local raw materials and develop a startup ecosystem through public private partnerships.
On social justice, the province will continue its housing programs for marginalized communities including Chepang, Bote, Majhi, Thami, Jirel and others. At least 1,000 safe homes are planned for poor, landless and vulnerable families.
Agriculture will receive greater focus through youth centered agribusiness programs and the "One Ward, One Agricultural Product" initiative. Mobile food testing services are also planned to strengthen food safety.
The government says the budget will be guided by goals of production growth, job creation, social justice, innovation, good governance and sustainable infrastructure.
Gandaki Province: Budget Near Rs 33 billion
Gandaki Province is slightly increasing its budget to around Rs 33 billion.
Officials attribute the rise to larger federal grants, higher reserves and improved internal revenue. Unspent funds from the current fiscal year have also contributed to the increase.
The budget is expected to support infrastructure, agriculture, tourism, human development and institutional capacity building across all 85 local governments.
Agriculture, tourism, drinking water and health will receive additional funding. The province plans to allocate more than 10 percent of its total budget to health services.
Large infrastructure projects will continue, while new small scale projects will be restricted. The government says projects below Rs 2.5 million in physical infrastructure and below Rs 1 million in irrigation and drinking water generally will not be included, except where necessary to complete ongoing works.
Lumbini Province: Focus on production, good governance
Lumbini Province is reducing its budget from Rs 43 billion to about Rs 38 billion in an effort to lower financial liabilities.
Despite the cut, the government says it will prioritize agricultural production, employment generation, infrastructure development, governance reform and social justice.
Key agricultural priorities include modernization, irrigation expansion, organic farming, preservation of indigenous crops and branding of local products. The province aims to boost production, replace imports and promote exports.
Youth employment programs will include vocational training, startups, self-employment initiatives and innovation support.
In health, the government plans to upgrade hospitals, expand specialist services and continue subsidies for treatment of cancer, kidney and heart diseases.
Education spending will support technical education, information technology-based learning and sports infrastructure. The budget will also emphasize completion of unfinished projects, digital governance, simplified service delivery and fiscal discipline.
Tourism, industry, energy and local resource utilization will be promoted to stimulate economic activity. Lumbini's long term goal of becoming an international center for religious and health tourism will remain a priority.
Karnali Province: Infrastructure gets top priority
Karnali Province is preparing a budget exceeding Rs 36 billion, roughly Rs 4 billion more than the current fiscal year's allocation.
About 61 percent of the budget is expected to go toward capital expenditure, reflecting the province's emphasis on physical infrastructure.
The government also plans to support agricultural modernization, mechanization and commercialization while reducing production costs and increasing productivity.
A Karnali Startup Fund and Business Incubation Center are set to be established to support young entrepreneurs and innovative business ideas.
To encourage local production, the province plans to launch "Make in Karnali" and "Made in Karnali" campaigns. Government agencies will be encouraged to purchase locally produced goods and services whenever possible.
Tourism development is another major focus. Funding will support infrastructure and promotion for activities such as bungee jumping, rafting, paragliding, off road rallies, hiking, trekking, honey hunting and wellness tourism.
Roads connecting Karnali with neighboring provinces will receive significant investment. Several strategic highways and regional road projects have been included for construction and upgrading.
The province also plans to continue medical assistance programs for patients suffering from serious illnesses including cancer, heart disease, kidney disease, Alzheimer's, Parkinson's, sickle cell anemia, spinal injuries, head injuries and autism.
Sudurpashchim Province: Can it escape influence and middlemen?
Unlike other provinces, debate in Sudurpashchim is focused less on policy priorities and more on how the budget is prepared.
The province's budget process has faced repeated criticism over allegations that projects are selected through political influence and middlemen rather than genuine public need. Critics claim project trading and advance commissions have become common features of the budgeting process.
Every year, lawmakers and residents accuse intermediaries of influencing project selection. Complaints about commission-based budget allocations have surfaced from tea shops to the provincial assembly.
Some provincial representatives say this year's budget has also been shaped more by access and influence than objective development needs. Local residents argue that transformative projects capable of changing the province's economic outlook are often ignored in favor of smaller politically connected schemes.
The controversy has become so widespread that even current and former finance officials have publicly expressed concern. Calls have been made for investigations by anti-corruption agencies, the Central Investigation Bureau and anti-money laundering authorities.
Residents say local governments, lawmakers and technical agencies should be determining priorities rather than brokers and power networks. Many believe public trust in the provincial system has eroded because budgets have repeatedly failed to deliver visible results.
The province allocated Rs 33.48 billion in the current fiscal year. As lawmakers begin debating the new budget, many residents remain skeptical that this year's plan will differ from previous ones.
While other provinces are emphasizing production, employment and governance reforms, Sudurpashchim faces a more fundamental challenge: convincing the public that budget decisions are being made in the public interest.
