KATHMANDU: All seven provinces have tabled their annual income and expenditure estimates for the upcoming fiscal year 2082/83 (2025/26) in their respective provincial assemblies.
Karnali Province was the last to present its budget, doing so at midnight on Sunday. Like the federal government, provinces are grappling with limited revenue and resource constraints.
Most have included unspent amounts from the current fiscal year as part of their budget sources. Gandaki and Madhes provinces have presented deficit budgets by increasing internal borrowing.
Gandaki aims to raise Rs 1.75 billion through internal debt, while Madhes has set a target of Rs 2 billion.
Karnali Province
The Karnali Provincial Assembly faced delays due to obstruction by opposition parties, but eventually convened at midnight on Sunday. Minister for Economic Affairs and Planning Rajiv Bikram Shah presented a budget of Rs 32.996 billion for fiscal year 2082/83—about five percent higher than the current fiscal year.
Of the total budget, Rs 7.799 billion (23.64%) is allocated for recurrent expenditure, Rs 19.982 billion (60.55%) for capital expenditure, and Rs 615 million (1.66%) for financial management. Rs 4.599 billion (13.95%) has been allocated for fiscal transfers to local governments.
On the revenue side, the province expects to raise Rs 967.4 million from internal sources, Rs 5.696 billion from unspent funds of the current fiscal year, and Rs 10.273 billion from federal revenue sharing.
Additional sources include Rs 10.564 billion from fiscal equalization grants, Rs 4.446 billion from conditional grants, Rs 539.7 million from complementary grants, and Rs 494.6 million from special grants.
Sudurpaschim Province
Sudurpaschim Province presented a budget of Rs 33.476 billion for FY 2025/26. Minister for Economic Affairs Bahadur Singh Thapa unveiled the budget on Sunday.
Of the total, Rs 10.208 billion (30.49%) is allocated for current expenditure, Rs 19.083 billion (59.25%) for capital, and Rs 3.427 billion (10.24%) for intergovernmental fiscal transfers. An additional Rs 10 million is allocated for financial management.
Budget sources include Rs 1.065 billion from internal revenue, Rs 9.872 billion from federal revenue sharing, and Rs 80 million from federal royalty distribution.
Other sources include Rs 8.925 billion from fiscal equalization grants, Rs 7.666 billion in unspent balances from FY 2081/82, Rs 4.163 billion in conditional grants, Rs 602.6 million in complementary grants, and Rs 516 million in special grants.
Lumbini Province
Minister for Economic Affairs and Planning Dhanendra Karki presented Lumbini Province’s budget of Rs 38.91 billion for the next fiscal year.
Of this, Rs 12.148 billion (30.88%) is allocated for recurrent expenditure, Rs 23.471 billion (60.32%) for capital, and Rs 3.424 billion (8.80%) for financial transfers.
The province expects to collect Rs 7.784 billion from internal revenue, Rs 11.860 billion from federal revenue sharing, Rs 415 million from federal royalties, and Rs 2.829 billion from local-level transfers.
Other sources include Rs 8.444 billion from fiscal equalization grants, Rs 4.661 billion from conditional grants, Rs 514 million from complementary grants, Rs 400 million from special grants, and Rs 2 billion from the current fiscal year’s cash balance.
Gandaki Province
Gandaki Province has announced a budget of Rs 31.979 billion for FY 2025/26. Minister for Economic Affairs Dr. Takraj Gurung presented the estimates in the provincial assembly on Sunday.
The province has allocated Rs 12.637 billion (39.5%) for recurrent expenditure, Rs 19.933 billion (59.7%) for capital expenditure, and Rs 250 million (0.8%) for financial management.
The province has also projected a budget deficit, estimating that the consolidated fund will face a shortfall of Rs 15.452 million in the coming fiscal year.
Bagmati Province
Minister for Economic Affairs and Planning Kundan Raj Kafle presented Bagmati Province’s budget of Rs 67.477 billion for the fiscal year 2025/26 in the provincial assembly.
Of the total allocation, Rs 26.445 billion (38.60%) is allocated for recurrent expenditure and Rs 41.432 billion (61.40%) for capital expenditure.
On the revenue side, the province aims to raise Rs 28.878 billion from tax revenue and Rs 6.794 billion from other sources. Additionally, Rs 14.819 billion is expected from federal financial transfers, while Rs 16.989 billion will be sourced from the estimated surplus and miscellaneous receipts from the current fiscal year.
Madhesh Province
Finance Minister Sunil Kumar Yadav presented a budget of Rs 46.583 billion for Madhesh Province for FY 2025/26. The budget is 6.13% higher than the previous year’s allocation.
Of the total budget, Rs 16.725 billion (35.89%) is allocated for recurrent expenditure and Rs 30.263 billion (64.11%) for capital expenditure.
Revenue sources include Rs 9.508 billion from internal sources, and Rs 12.736 billion from federal transfers—comprising Rs 7.721 billion in fiscal equalization grants, Rs 4.261 billion in conditional grants, Rs 390 million in special grants, and Rs 350 million in complementary grants.
Additionally, Rs 12.358 billion is expected from federal revenue sharing and Rs 10.382 billion from the cash balance of the previous fiscal year. The remaining Rs 2 billion will be managed through internal borrowing.
Koshi Province
Minister for Economic Affairs and Planning Ram Bahadur Magar presented Koshi Province’s budget of Rs 35.879 billion for the upcoming fiscal year. The budget is 1.7% higher than the previous year’s.
Of the total allocation, Rs 18.673 billion (52%) is allocated for recurrent expenditure, Rs 17.106 billion (47.7%) for capital, and Rs 100 million (0.3%) for financial management. Rs 4.707 billion is allocated for intergovernmental transfers to local governments.
The province plans to raise Rs 5.5 billion from internal revenue, Rs 12.396 billion from federal revenue sharing, and Rs 4.983 billion from fiscal equalization grants.
Additional federal transfers include Rs 4.571 billion in conditional grants, Rs 3.917 billion in complementary grants, and Rs 5.572 billion in special grants. The remaining Rs 3.13 billion will come from unspent funds from the current fiscal year.
Koshi Province has also set an economic growth target of 5.3% for the next fiscal year through the implementation of this budget.
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