Six provinces unveiled their annual budgets on Sunday for the fiscal year 2025-26 that begins in mid-July. The budgets primarily focus on boosting agricultural productivity and expanding social safety nets, particularly in the health sector.

The provincial announcements come two weeks after the federal government presented the national budget. In accordance with the federal structure, local governments are expected to unveil their budgets soon.

Koshi Province has announced a budget of Rs35.87 billion for the next fiscal year, an increase of Rs600 million from the current year. Presenting the budget at the provincial assembly, Minister for Economic Affairs and Planning Ram Bahadur Rana Magar said the plan centres on inclusive, equitable, and sustainable development.

The budget prioritises agriculture, industry, services, education, health, infrastructure, and tourism. The health sector alone has been allocated Rs3.51 billion, focusing on expanding services and improving infrastructure.

The Shailaja Heart Disease Centre in Biratnagar will be upgraded to a specialised hospital, and a new campaign, My Health, My Responsibility, will be launched to raise public awareness.

Mental health services will be expanded across all provincial hospitals. The government has earmarked Rs36.1 million for medicine procurement and Rs30 million to establish a herbs processing centre in Khotang. Children under 10 will receive free treatment at government hospitals. The school nursing programme will continue, and Rs31 million has been set aside to strengthen provincial laboratories.

Minister Rana Magar said the budget’s health-related allocations aim to ensure accessible and affordable care, with an emphasis on improving quality and reach.

The agriculture, industry, and cooperatives sectors have been allocated Rs2.18 billion. Of this, Rs166.5 million will go toward fruit production, processing, and marketing, based on local feasibility studies in partnership with local governments and the private sector. Rs140 million has been allocated to pay for interest subsidies on farm loans to improve access to agricultural credit.

An additional Rs220 million will support livestock development and disease control. The province will establish a Rs20 million revolving fund and spend another Rs20 million on a tea conference.

Koshi has allocated Rs100 million for its upcoming tourism year, totalling Rs2.97 billion for tourism, forests, and environmental conservation. The province declared 2082 BS as its official tourism year at a ceremony in the Teenjure-Milke area.

Gandaki Province has unveiled a Rs31.97 billion budget for 2025-26, Rs998.57 million less than the current year’s Rs32.97 billion. Minister for Economic Affairs Tek Bahadur Gurung presented the budget during Sunday’s assembly session.

Of the total, Rs12.63 billion has been set aside for recurrent expenses, Rs19.09 billion for capital expenditures, and Rs250 million for financial management. These represent 39.5 percent, 59.7 percent, and 0.8 percent of the total budget, respectively.

Revenue sources include Rs7.73 billion in fiscal equalisation grants, Rs3.35 billion in conditional grants, Rs639.7 million in complementary grants, and Rs498.6 million in special grants. The province expects Rs9.79 billion from federal revenue sharing, Rs498.9 million from royalties, and Rs5.45 billion from internal revenue. A surplus of Rs2.24 billion from the current fiscal year is expected to be carried over.

To cover the remaining deficit, Gandaki plans to raise Rs1.75 billion through internal borrowing.

Although legal and institutional frameworks have previously stalled such efforts, Minister Gurung said mechanisms will be implemented to mobilise debt in the coming fiscal year. He stressed that borrowed funds will be directed toward productive, employment-generating, and high-return projects.

As of mid-June, the province had utilised 48.06 percent of its current budget.

Lumbini Province has presented a Rs38.91 billion budget for the new fiscal year. Of this, Rs12.01 billion (30.88 percent) is for recurrent expenditure and Rs23.47 billion (60.32 percent) for capital investment. Fiscal transfers amount to Rs3.42 billion, or 8.8 percent of the total.

During the 13th meeting of the Lumbini Provincial Assembly, Minister for Economic Affairs and Planning Dhanendra Karki said the budget prioritises agriculture, industry, tourism, and infrastructure. The government aims to realise its long-term vision of “Prosperous Lumbini: Happy Citizens”.

To achieve this, the budget focuses on enhancing agricultural productivity, improving access to education and healthcare, promoting entrepreneurship, ensuring sustainable infrastructure, and fostering inclusive development and social justice. Employment creation and measures to reduce poverty and economic inequality are other key priorities.

Minister Karki emphasised that the budget ensures high and sustainable economic growth while narrowing economic disparities.

Madhesh Province has tabled a budget of Rs46.98 billion for the fiscal year 2025-26. Finance Minister Sunil Kumar Yadav presented the budget, which allocates Rs16.72 billion (35.89 percent) for recurrent spending and Rs30.26 billion (64.11 percent) for capital projects.

The projected revenue sources include Rs9.5 billion in internal revenue, Rs7.72 billion from fiscal equalisation grants, Rs4.26 billion in conditional grants, Rs394.5 million in special grants, and Rs358.2 million in complementary grants, totalling Rs12.73 billion. An additional Rs12.35 billion is expected from federal revenue sharing, and Rs10.38 billion from savings from the current fiscal year.

Minister Yadav said the budget still has a shortfall of around Rs2 billion, which the province plans to meet through internal loans.

The Sudurpaschim provincial government unveiled a Rs33.47 billion budget for the next fiscal year.

Minister for Economic Affairs and Planning Bahadur Singh Thapa presented the budget, allocating Rs19.83 billion for capital expenditure, Rs10.20 billion for recurrent expenditure, and Rs3.42 billion in fiscal transfers.

The budget mainly continues the current year’s programmes. It places top priority on physical infrastructure development and agriculture.

Kundan Raj Kafle, Minister for Economic Affairs and Planning of Bagmati Province, unveiled a total budget of Rs67.47 billion for the fiscal year 2025-26, nearly Rs3 billion more than the outlay of the current fiscal year. The province has allocated Rs26.04 billion for recurrent expenditures and Rs41.43 billion for capital expenditures.

The Bagmati government prioritises sports, health and tourism in the new budget.

The Bagmati provincial budget has announced the ride-hailing service legislation and the mandatory display of embossed number plates on vehicles. The budget has allocated funds for constructing multi-facility stadiums in Lalitpur and Dolakha.

By the time Post went to press, the Karnali Provincial Assembly meeting was uncertain due to the failure to reach an agreement between the ruling and opposition parties.

The Maoist party said it would not participate in the meeting and criticised the budget for failing to include the proposed Project Bank.

(With inputs from our correspondents in the provinces)