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KATHMANDU, June 16: The Lumbini Province government has tabled a budget of Rs 38.91 billion for the Fiscal Year (FY) 2025/26 in the Provincial Assembly.
Provincial Minister for Economic Affairs and Planning Dhanendra Karki presented the budget, allocating Rs 12.1 billion for recurrent expenditure, Rs 23.47 billion for capital expenditure, and Rs 3.42 billion for financial transfers.
In the 13th meeting of the sixth session of the Lumbini Provincial Assembly held on Sunday, Minister Karki allocated 30.88 percent of the total budget for recurrent expenditure, 60.32 percent for capital expenditure, and 8.80 percent for financial transfers.
Rs 40.95 billion budget for Lumbini Province for next FY, funds...
The provincial government has pledged to achieve the long-term aspiration of "Prosperous Lumbini: Happy Citizens." It has prioritized major projects, drinking water, and road infrastructure.
The budget also aims to address sectors such as agriculture, tourism, and education. Emphasis has been placed on boosting the overall economic sector of Lumbini Province, ensuring sustainable economic growth and stability, and promoting economic development.
The Ministry of Physical Infrastructure Development has received the highest budget allocation among all ministries, with a total of Rs 9.92 billion. The second-highest allocation has gone to the Ministry of Urban Development and Water Supply, which has received Rs 5.62 billion.
Similarly, the Ministry of Health has been allocated Rs 4.95 billion, the Ministry of Social Development Rs 3.61 billion, the Ministry of Energy, Water Resources and Irrigation Rs 2.68 billion, the Ministry of Forests and Environment Rs 2.54 billion, the Ministry of Industry, Tourism and Transport Rs 1.90 billion, and the Ministry of Agriculture, Land Management and Cooperatives has received Rs 1.50 billion.
For the upcoming FY, the province has projected the following sources to cover the estimated expenditure: Rs 7.78 billion from internal revenue, Rs 11.86 billion from revenue sharing with the federal government, Rs 415 million from royalties provided by the federal government, and Rs 2.82 billion from revenue shared by local levels.
Similarly, the province has estimated to receive Rs 8.44 billion through fiscal equalization grants from the federal government, Rs 4.66 billion through conditional grants, Rs 514 million through complementary grants, Rs 400 million through special grants, and Rs 2 billion will be mobilized from the current FY’s cash balance.
However, experts have noted that the revenue projected by the government and the funds expected from various agencies may not materialize as planned, potentially causing problems in budget implementation. They also point out that, like in previous years, this year’s budget is based more on estimation than on realistic revenue expectations.
