The Kathmandu Metropolitan City (KMC) on Sunday unveiled a budget of Rs25.76 billion for the fiscal year 2025-26, slightly up from last year’s Rs25.70 billion. The budget was presented by Deputy Mayor Sunita Dangol during the 17th municipal assembly meeting on Sunday.

Unveiling the budget, Dangol said that Rs25.11 billion will be sourced from the internal consolidated fund, while the remaining Rs650 million is expected from external sources.

As in previous years, infrastructure development has received the largest share of the budget, with Rs12.80 billion (51 percent) being allocated for that. This includes continued focus on roads, sanitation, and public utilities.

Social development comes next, receiving Rs5.02 billion (20 percent), followed by office operations and administrative management at Rs3.51 billion (14 percent). Governance and intersectoral coordination has been allocated Rs3.01 billion (12 percent), while economic development will receive Rs753.4 million (3 percent).

Deputy Mayor Dangol said the metropolis will focus on projects aimed at improving daily urban life.

“We are giving high priority to infrastructure schemes within the city area, solid waste management, urban health promotion, good governance, and educational reform,” she said.

The budget also promotes employment generation and income growth through the ‘One ward, one enterprise’ programme. The metropolis aims to strengthen local entrepreneurship and skill-based opportunities in all 32 wards, the budget stated.

Other key areas of focus include improving the quality of public school education, expanding urban health centres, and increasing institutional capacity to deliver municipal services effectively.

Last fiscal year, KMC raised Rs10 billion in revenue. Based on that performance, the revenue advisory committee, chaired by Mayor Balendra Shah, had set the spending ceiling at Rs25.11 billion for the current budget.

The metropolis failed to bring its budget on time due to a prolonged dispute between Mayor Shah and the federal government. However, the latest budget process has seen collaboration between the mayor’s office and the deputy mayor, paving the way for its timely presentation.

Earlier, Deputy Mayor Dangol and Chief Administrative Officer Saroj Guragain had sided with the central authorities when there was a tussle between Mayor Shah and federal ministers and other leaders.

While unveiling the policy and programmes as well as the budget, the city leadership reiterated its commitment to improving service delivery, ensuring transparency, and tackling pressing urban challenges, including waste management, governance, and equitable development.

The metropolitan leadership has announced to endorse the budget from its next meeting scheduled for July 16.