KATHMANDU, June 24: Nepal’s six metropolitan cities have unveiled budgets totaling Rs 54 billion for Fiscal Year (FY) 2026/27, with Kathmandu Metropolitan City (KMC) alone accounting for almost half of the collective outlay. While most of the cities have directed a larger share of resources toward recurrent expenditure and administrative liabilities, Kathmandu and Lalitpur stand out for prioritizing infrastructure development.
KMC, the federal capital, leads with a budget of Rs 25.88 billion, more than seven times that of Biratnagar Metropolitan City, which has announced the smallest budget of Rs 3.56 billion. Lalitpur Metropolitan City has presented a budget of Rs 7.48 billion, Pokhara Rs 7.15 billion, Bharatpur Rs 5.51 billion, and Birgunj Rs 4.42 billion. The budgets of Pokhara and Biratnagar have declined compared to last year, while Birgunj has increased its estimated expenditure by around Rs 1.19 billion.
Overall, most metropolises have allocated a higher proportion of their budgets to recurrent expenditure, leaving limited space for development projects. However, Kathmandu and Lalitpur stand as exceptions. KMC has earmarked 61 percent of its budget — Rs 15.31 billion — for infrastructure development and construction, while Lalitpur has allocated 56.6 percent of its budget toward capital expenditure. In contrast, cities like Pokhara and Birgunj have directed more than half of their budgets to recurrent expenditure, creating pressure on development financing.
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KMC has increased its budget size by more than Rs 770 million compared to last year. Its priorities include pollution control, public transport management, waste management, improvement in school education, promotion of good governance, capacity building of urban health centers, and the ‘One Ward, One Enterprise’ program. Funds have also been set aside for the protection of heritage sites of historical, religious, and archaeological importance.
LMC’s budget emphasizes eco-friendly initiatives such as operating ‘e-shuttle’ buses in heritage areas, launching a mobile app for waste management, and establishing processing plants.
Biratnagar has set aside Rs 1.60 billion for infrastructure development. The city has prioritized multi-year pride projects and wastewater treatment.
Pokhara’s budget envisions developing the city as a modern tourist destination. However, 55.1 percent of the budget is allocated for recurrent expenditure, leaving only 44.9 percent for capital projects. Spending performance has also lagged: by mid-June, only 24.2 percent of capital expenditure had been utilized, while recurrent expenditure reached 61.7 percent. Internal revenue collection stood at just 46.02 percent of the target.
Bharatpur has prioritized completion of unfinished projects such as the Gautam Buddha International Cricket Stadium. The city has also emphasized improving education quality and introducing new programs in the sector.
Birgunj’s budget focuses on infrastructure development, forest and environment programs, disaster management, economic and social development, and good governance. Initiatives include digitization, construction of green and sustainable urban structures, and positioning Birgunj as an investment hub.
