Provincial Budgets for Fiscal Year 2082/83 Unveiled
June 16, 2025 | Investopaper
On Sunday, provincial governments announced their budgets for the fiscal year 2082/83, adhering to the mandate of the Intergovernmental Fiscal Management Act, 2074, which requires budget presentations by the 1st of Asar each year. The budgets were tabled in their respective provincial assemblies, showcasing varied priorities and financial strategies amid economic constraints.
The budget presentation in Karnali Province faced significant delays due to opposition protests while Bagmati Province also encountered delays due to internal administrative issues, presenting its budget late Sunday night. Other provinces, however, managed smoother presentations.
Provincial Budget Breakdown
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Bagmati Province leads with the largest budget at Rs. 67.47 billion, an increase of Rs. 3 billion from the current year.
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Madhesh Province follows with Rs. 46.58 billion, up from Rs. 43.89 billion.
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Lumbini Province, despite a slight reduction, allocates Rs. 38.92 billion.
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Koshi Province proposes Rs. 35.87 billion, an increase of Rs. 0.6 billion.
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Sudurpashchim Province budgets Rs. 33.47 billion, up by Rs. 2 billion.
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Gandaki Province, with the lowest budget, allocates Rs. 31.57 billion, reflecting a reduction.
Despite a reduction in federal grants and revenue sharing, the combined budget of all provinces for 2082/83 totals Rs. 287 billion, a modest increase of approximately Rs. 9 billion compared to the current fiscal year’s Rs. 278 billion. Notably, Lumbini and Gandaki provinces have scaled down their budgets, continuing a trend from the previous year, while others have slightly expanded their financial plans.
Provincial governments heavily depend on federal financial transfers, which form the backbone of their expenditure plans. These transfers, provided under four categories, remain the primary funding source. Revenue sharing is another key resource, but provinces have shown limited initiative in boosting internal revenue. Instead, they plan to bridge funding gaps through internal loans and unspent reserves from previous budgets, mirroring federal strategies.
Mixed Priorities
The provincial budgets reflect diverse priorities, often lacking focus on innovative, high-impact programs. Instead, they cover a broad range of sectors, with a notable emphasis on completing ongoing projects. Criticism persists over the inclusion of projects driven by vested interests in provincial planning banks, alongside concerns about stalled initiatives.
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Koshi Province aims for high economic growth, prioritizing education, healthcare, infrastructure, agricultural productivity, and reducing migration.
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Madhesh Province emphasizes agriculture and tourism.
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Bagmati Province focuses on physical infrastructure, prioritizing construction.
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Gandaki Province focuses on completing pending projects, alongside initiatives like in-province driver’s license printing and ride-sharing regulation.
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Lumbini Province targets agricultural productivity, quality education, healthcare access, entrepreneurship, and sustainable infrastructure under the vision of “Prosperous Lumbini, Happy Citizens.”
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Karnali Province focuses on commercial agriculture, job creation, entrepreneurship, herbal resource utilization, and economic prosperity.
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Sudurpashchim Province allocates one-third of its budget to physical infrastructure, committing to complete existing programs.
