POKHARA: The budget for the upcoming fiscal year 2082/83 is set to decrease in Gandaki Province due to reductions in equalization grants and revenue collection.
The Provincial Resource Estimates Committee has recommended that the provincial government, which allocated a budget of Rs 32.97 billion for the current fiscal year, set a budget of approximately Rs 29.5 billion for the next fiscal year.
Dilliram Rizyal, Head of the Budget and Program Division at the Ministry of Economic Affairs, explained that the overall budget is expected to decrease by nearly three billion rupees, leading to a reduction in the ministry-wise budget ceilings.
He pointed out that the decline in equalization and supplementary grants has put additional pressure on budget formulation, and the province’s internal revenue resources have not seen significant growth.
Rizyal further noted that, with only two months remaining in the fiscal year, just 52 percent of the target revenue has been collected. He projected that only around 70 percent of the target revenue will be achieved by the end of the current fiscal year.
The Provincial Policy and Planning Commission, however, has stated that the provincial budget could increase depending on the budget allocated by the federal government.
The commission has set a ceiling of Rs 9.48 billion for the Ministry of Physical Infrastructure and Transport Management alone, compared to the Rs 12.7 billion allocated in the current fiscal year.
Similarly, the budget formulation process is progressing with the following proposed ceilings for various ministries: Rs 2.67 billion for the Ministry of Health, Rs 1.35 billion for the Ministry of Social Development, Youth and Sports, Rs 900 million for the Ministry of Forests and Environment, and Rs 650 million for the Ministry of Industry and Tourism.
The Office of the Chief Minister and the Council of Ministers has been allocated a ceiling of Rs 1.15 billion, and Rs 133.6 million has been allocated for the Ministry of Economic Affairs.
Meanwhile, the provincial government has begun preparations for the budget allocation, prioritizing sectors such as agriculture, tourism, and health.
The budget priorities will be based on the province’s second five-year plan, according to the Ministry of Economic Affairs, which has initiated discussions with line ministries regarding budget formulation.
As per constitutional requirements, provincial governments must publicly release their financial year budget estimates by Asad 1 in the lunar calendar.
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