By Our Reporter

All seven provincial governments have tabled their budgets for the upcoming fiscal year 2025/26, with total outlays ranging from Rs. 31.97 billion (Gandaki) to Rs. 67.47 billion (Bagmati).

Despite varying fiscal sizes and priorities, all provinces emphasised capital expenditure over recurrent spending and aligned their policies toward infrastructure development, employment generation, and sustainable growth.

Madhes allocated the highest proportion (64 per cent) to capital expenditure with an aim to boost agro-industrial development and youth entrepreneurship, while Koshi's nearly balanced split between recurrent and capital budgets is said to have growth approach. Sudurpashchim and Lumbini prioritised agriculture and tourism alongside physical infrastructure, whereas Gandaki stressed foreign investment, regional competitiveness, and private sector engagement. Likewise, Bagmati's focus is scattered across tourism, sports, agriculture and health while Karnali has given priority to investment in construction.

Most of the provinces rely heavily on federal revenue-sharing, conditional and equalisation grants, and unspent balances from the current fiscal year.

All provinces tabled the budget with the given dateline of Asar 1(June 15) although Karnali had to brace to present the budget within the deadline due to a feud between ruling and main opposition parties. 

Koshi: Rs. 35.88 billion

The Koshi Provincial government has unveiled a budget of Rs. 35.88 billion for the upcoming fiscal year 2025/26.

Minister for Economic Affairs and Planning of Koshi Province Ram Bahadur Magar presented the budget of the province at the meeting of the Provincial Assembly on Sunday.

Of the total budget allocation, Rs. 18.67 billion (52 per cent) has been allocated under the heading of recurrent expenditure, Rs. 17.10 billion (47.7 per cent) under the heading of capital expenditure and Rs. 100 million (0.3 per cent) under financial management.

Of the total allocation, Rs. 4.7 billion is allocated for financial transfers to the local levels.

Bagmati: Rs. 67.47

Minister for Economic Affairs and Planning of the Bagmati Province, Kundan Raj Kafle, announced a budget of Rs. 67.47 billion for FY 2025/26. This marks an increase of Rs. 3 billion compared to the current FY's budget of Rs. 64.54 billion.

For the upcoming year, Rs. 26.04 billion (38.06 per cent) is allocated for recurrent expenditure, while Rs. 41.43 billion (61.04 per cent) has been earmarked for capital expenditure. To meet the expenses, the provincial government has set a target to collect Rs. 28.87 billion through taxes and Rs. 6.79 billion from other sources.

Presenting the budget at the Bagmati Provincial Assembly, Minister Kafle said that Chitwan would be developed as a tourism hub and a film city would be established at Dangduge Hill in Dolakha. The minister prioritised agricultural production, introducing a 'One Ward, One Agriculture' programme.

Gandaki: Rs. 31.97 billion

The Gandaki provincial government has presented a budget of Rs. 31.97 billion for the next fiscal year 2025/26. 

Minister for Economic Affairs of Gandaki Province Dr. Tak Raj Gurung has allocated around Rs. 12.63 billion (39.5 per cent) under the heading of recurrent expenditure, Rs. 19.09 billion (59.7 per cent) under capital expenditure and Rs. 250 million (0.8 per cent) under financial management.

Minister Gurung said that Gandaki Province would receive Rs. 7.73 billion from the federal government as fiscal equalisation and Rs. 9.79 billion from revenue sharing.

He estimated that the province would receive Rs. 498 million from royalty, Rs. 3.35 billion from conditional grants, Rs. 639 million from supplementary grants and Rs. 498 million from special grants. 

He estimated that the internal revenue of the province will be Rs. 5.45 billion.

Lumbini: Rs. 38.91 billion

The Lumbini Provincial government has presented a budget of Rs. 38.91 billion.

Minister for Economic Affairs and Planning of Lumbini Province Dhanendra Karki has allocated a budget of Rs. 12.01 billion (30.88 per cent) for recurrent expenditure, Rs. 23.47 billion (60.32 per cent) for capital expenditure and Rs. 3.42 billion (8.80 per cent) for fiscal transfer to local levels for the next fiscal year.

The province has set a target to mobilise Rs. 7.78 billion from the internal revenue of the province, Rs. 11.86 billion from revenue sharing received from the federal government and Rs. 415 million from royalties to be received from the federal government.

Similarly, the provincial government has estimated to generate revenues of Rs. 2.829 billion from local levels.

Madhes: Rs. 46.98 billion

The government of Madhes Province has announced a budget of Rs. 46.98 billion for the upcoming fiscal year 2025/26. 

Minister for Finance of Madhes Province Sunil Kumar Yadav has allocated Rs. 16.72 billion for recurrent expenditure and Rs. 30.26 billion for capital expenditure. 

The share of recurrent and capital expenditure in the budget estimate is 35.89 per cent and 64.11 per cent respectively.  

The size of the budget of the Madhes Province for the next fiscal year has increased by 6.17 per cent as compared to the current fiscal year.

The budget size of the province for the current fiscal year was Rs. 43.89 billion.

Sudurpaschim: Rs. 33.47 billion

Minister for Economic Affairs of the Sudurpashchim Provincial Government Bahadur Singh Thapa unveiled a budget of Rs 33.47 billion for the FY 2025/26 at the Provincial Assembly.

Out of the total budget, Rs. 10.21 billion (30.49 per cent) is allocated for recurrent expenditure, while Rs. 19.83 billion (59.25 per cent) has been set aside for capital expenditure. Likewise, Rs. 3.43 billion (10.24 per cent) is allocated for inter-governmental fiscal transfers and Rs. 10 million for financial management.

Minister Thapa informed that Rs. 1.65 billion is expected to be generated through internal revenue mobilisation next year. Furthermore, the province anticipates receiving Rs. 9.87 billion from revenue-sharing, Rs. 80 million from royalty-sharing, and Rs. 8.93 billion as financial equalisation grants - all from the federal government.

Karnali: 32.99 billion

Meanwhile, in Karnali, the main opposition CPN Maoist Centre caused a delay in the budget presentation. However, Minister for Economic Affairs and Planning Rajiv Bikram Shah presented the budget at midnight.

The Province has allocated Rs. 7.79 billion under the heading of recurrent expenditure and Rs. 19.98 under capital expenditure.

As provinces have to depend on the federal government for funds, they have been only a burden for the country. Yet, they have tabled the budget with some ambitious plans and projects.