Provinces prioritise development spending in budgets for next fiscal year

Provincial governments across Nepal have unveiled their budgets for the fiscal year 2026-27, with a strong emphasis on prioritizing development spending for capital projects. The primary goal is to boost infrastructure, improve public services, and stimulate economic activity within their respective regions.

Roads, healthcare, agriculture, and tourism are among the key sectors receiving significant allocations. Provinces are also focusing on enhancing public service delivery while attempting to contain recurrent expenditure. This strategic financial planning aims to foster growth and improve the quality of life for citizens.

Bagmati Province presented the largest budget, totaling Rs66.93 billion, with over 65 percent earmarked for capital expenditure. Madhesh Province followed with a budget of Rs41.13 billion, also prioritizing capital projects, though its budget is slightly lower than the previous year. Koshi Province introduced a budget of Rs40.44 billion, focusing on infrastructure, agriculture, and tourism. Lumbini Province announced a budget of Rs37.38 billion, with substantial investment planned for healthcare and physical infrastructure, including a master plan for road development.