Provincial budgets focus on reviving economyMost of the provinces have set aside a big chunk of their budgets for infrastructure development.
Six provinces on Friday unveiled their budgets for the next fiscal year 2022-23 beginning mid-July, all laying focus on reviving an ailing economy. Koshi province published its annual financial plan on Thursday.
Except for Karnali and Madhesh, all the provincial budgets are smaller than last year.
Most of the provinces have set aside a big chunk of their budgets for infrastructure development.
Bagmati has the largest budget of Rs62.7 billion, despite being Rs8 billion less than the previous year’s budget.
Bagmati has set aside Rs26.7 billion or 42.58 percent of the budget for recurrent expenditure and Rs35.5 billion or 56.62 percent for capital expenditure. The remaining 0.8 percent has been allocated for fiscal transfer to the local levels.
The province aims to collect Rs25.17 billion in tax revenues and Rs5.26 billion in non-tax revenues. The federal government has promised a fiscal transfer of Rs17.81 billion for Bagmati province.
Bahadur Singh Lama, Minister of Economic Affairs and Planning of Bagmati province, said Rs50 million has been earmarked to establish organic fertiliser plants.
Bagmati province aims to promote seeds and saplings of indigenous varieties of food. The province has announced providing farmers with identity cards in the next fiscal year.
Madhesh province has presented a budget of Rs46.92 billion for the next fiscal year, which is 0.08 percent less than the previous one. It has allocated Rs20.92 billion for recurrent expenditure and Rs20.92 billion for capital expenditure.
Gandaki published a budget of Rs33.42 billion in the Provincial Assembly on Friday. The budget for the next fiscal year is 7 percent smaller than the previous one.
Jeet Prakash Ale, Minister for Economic Affairs and Planning of Gandaki province, said Rs20.19 billion has been allocated for capital expenditure and Rs12.13 billion for recurrent expenditure.
The province will provide Rs500 million in fiscal transfers to the local levels.
Sudurpaschim province has announced a Rs29.26 billion budget for the next fiscal year, which is 20.35 percent smaller than the previous budget.
The province has allocated Rs17.02 billion for capital expenditure, which is 58.16 percent of the budget, and Rs9.59 billion for recurrent expenditure, which is 32.79 percent of the total budget.
The province has allocated Rs30 million for fiscal transfers to the local levels.
Presenting the budget, Naresh Kumar Shahi, Minister for Economic Affairs and Planning of Sudurpaschim province, said that Rs12.68 billion has been allocated for road infrastructure, energy, irrigation and river control and urban development.
The budget has laid a focus on agriculture. The financial plan contains a campaign to make the province self-sufficient in food production, and for this purpose, it has set aside Rs40 million to provide interest-free loans to farmers.
Koshi province unveiled a Rs36.24 billion budget through an ordinance. Its budget for the next fiscal year is 8.78 percent less than the last one.
The Koshi provincial government has allocated Rs14.39 billion for recurrent spending, which consists of regular expenses like salaries and allowances. It has set aside Rs18.23 billion for capital spending, Rs10 million for financial management and Rs3.60 billion for transfer to the local levels.
A sum of Rs2.7 billion has been allocated to the agricultural sector with the goal of creating jobs by modernising farming. The budget has allocated Rs430 million for industry, Rs11.41 billion for physical infrastructure and Rs5.43 billion for water supply, irrigation and energy.
The provincial government has set aside Rs3.07 billion for health and Rs1.79 billion for social development.
Lumbini province rolled out a Rs40.47 billion budget in the Provincial Assembly for the next fiscal year, which is 5 percent less than the previous budget.
The province has allocated Rs16.63 billion or 33.68 percent of the budget for current expenditure, Rs23.25 billion or 57.45 percent for capital expenditure, and Rs3.58 billion or 8.87 percent for fiscal transfers to the local levels.
Lumbini province has allocated Rs40 million for schemes to promote and develop skills, capital and technology.
The provincial government has targeted creating 200,000 jobs in the next two years through the Chief Minister Economic Development Programme. The government has allocated Rs20 million for the development of small and medium industries to create employment.
Karnali province has announced a budget of Rs33.37 billion for the next fiscal year, which is 2.33 percent higher than the previous one.
Bed Raj Singh, Minister for Economic Affairs, said that Rs9.20 billion has been allocated for recurrent expenditure and Rs19.97 billion has been allocated for capital expenditure. The province has set aside Rs4.80 billion for fiscal transfers to the local levels.
The province has earmarked Rs10.11 billion for physical infrastructure, transport and urban development. The province has allocated Rs210 million for the Karnali Ujyalo Programme. The province has allocated Rs850 million for the construction of a stadium in Birendranagar which is slated to be completed within a year.