What’s in the provincial budget?

NL Today

  • Read Time 8 min.

Kathmandu: All the seven province governments on Tuesday presented the budget for the coming fiscal year 2021/22 as per the constitutional provision. The total budget brought by seven provinces for the coming fiscal year is more than Rs 261 billion.

Province 1 unveils Rs 32 billion budget

Minister for Economic Affairs and Planning Tanka Angbuhang presented a budget of Rs 32 billion 460 million for the Fiscal Year 2021/22.

Of the total budget allocated to implement the government’s policy and program for the new fiscal year, Rs 14 billion 161 million i.e. 43.6 percent has been allocated for current expenditure and Rs 15 billion 53.5 million or 46.3 percent for capital expenditure. Likewise, fiscal transfer to the local levels constitutes Rs 3 billion 224.2 million and Rs 30 million worth of fiscal measures.

In the budget estimates, the government plans to collect Rs 4 billion 97.7 million through internal revenue mobilization, Rs 9 billion 816.6 million from revenue sharing and Rs 8 billion 560 million to be received as equalization grants from the federation. Other sources to complement the budget are conditional grants, matching grants, special grants as well as from cash reserve and foreign grants.

Photo: RSS


The government has also projected a 3.6 growth rate for the province while allocating Rs 3 billion 250 million for the health sector. Another Rs one billion 190 million has been appropriated for the education sector, Rs 212.7 million for women, children, senior citizens and inclusion, Rs 160 million for youth, sports, labor and employment and Rs 2 billion 900 million for agriculture and cooperatives.

Province 2 tables Rs 33 billion budget

The Province 2 government has presented a budget of Rs 33 billion 791.4 million for the fiscal year 2021/22. Minister for Economic Affairs and Planning Bijaya Yadav tabled the budget estimates for the new fiscal year at the Provincial Assembly.

The revenue and expenditure estimates for the province including Rs 15 billion 633.3 million towards current expenditure and Rs 15 billion 58 million towards capital expenditure, accounting for 46.26 and 53.44 percent respectively.

Economic Affairs Minister Yadav said the government targets to collect Rs 3 billion 49.1 million from internal revenue, Rs 13 billion 903.4 million as grants from federal government, Rs 9 billion 588.9 million as revenue sharing and Rs 6 billion 250 million saved from the current financial year budget.

Photo: RSS

The government has allocated Rs 2 billion 350 million for the electoral constituency development program and Rs 3 billion 165 million in fiscal transfers for the local level. Other priorities outlined in the budget include reviving the economy and addressing unemployment with special priority to health, agriculture, education, employment generation, and tourism. It has allocated Rs 200 million for Covid-19 control measures.

The government has allocated Rs 40 million for the construction of statutes of Ramraja Singh and Gajendra Narayan Singh, and martyr Durga Nanda Jha. Furthermore, Rs. 200 million has been appropriated for the ‘Educate Daughter, Save Daughter’ campaign and Rs 320 for the beautification of ponds and lakes in the province.

The Province 2 government’s budget in the current fiscal year was Rs 33 billion 560.9 million.

Bagmati province government unveils annual budget of Rs 57.72 billion

The Bagmati Province Government has unveiled a budget of over Rs 57.72 billion for the fiscal year 2021/22.

Presenting the budget for the upcoming fiscal year at the province assembly, Minister for Economic Affairs and Planning Kailash Prasad Dhungel said over Rs 26 billion and 16.6 million has been appropriated as recurrent capital and over Rs 29.7 billion as capitalized budget.

Most of the chunks of the budget have been earmarked for the prevention and control of coronavirus infection. Minster Dhungel said that the budget has laid emphasis on treatment to all Covid-19 infected patients in all district hospitals of the province, disease control, hospitals up-gradation, and oxygen plant set up as well as the management of ventilators, HDU and ICU wards.

Noting that budget has been allocated for managing ‘one school, one nurse’ in all 366 community schools of the province and also for the program incentivizing farmers towards enhancing agro productivity, he said the annual budget has put focus on developing physical infrastructure through project bank in all districts and establishment of the technical university in the province.

Among others, priorities of the budget are the operation of electric buses from Hetauda to different areas including Kathmandu Valley, and construction of Bhimfedi-Kulekhani tunnel highway in the coming four years in coordination and collaboration with the federal government.

Gandaki Province unveils new budget of Rs 30.3 billion

The Gandaki Province government released a budget of Rs 30.3 billion for the new fiscal year 2021/22.

Chief Minister for the Gandaki Province government Krishna Chandra Pokharel, who also holds the portfolio of Minister for Finance and Planning, presented the budget in the Gandaki Province Assembly meeting allocating Rs 13.64 billion for current expenditure and Rs 13.73 billion for capital expenditure. Likewise, Rs 240 million has been allocated for fiscal management.

Of the budget, Rs 7.42 billion would be received from the Federal Government in financial equalization grant. Likewise, Rs 4.18 billion would be received in conditional grant, Rs 870 million in supplementary grant, Rs 540 million in special grant, Rs 7.62 billion from revenue distribution and Rs 300 million in royalty from the Federal Government.

According to Chief Minister Pokharel, Rs 4.97 billion would be covered from the internal resources and Rs 2.1 billion, which is not being spent in the current fiscal year, is also included in the budget.

Photo: RSS

Pokharel said that Rs 1 billion would be received from the domestic borrowing (internal debt) and Rs 1 billion from the Federal Government.

He said that unproductive and non-essential costs have been cut in order to revitalize the Covid-19 hit economy adding that local means and resources would be mobilized in service and production sectors for employment generation.

Chief Minister Pokharel announced that the budget is focused on safeguarding the lives of citizens of the province by containing Covid-19 and generate employment opportunities for the citizens rendered jobless at home and abroad due to the pandemic.

The Gandaki Province Government has allocated Rs 10 million each to all the local levels to implement Province Government and Local Level Partnership Program.

Likewise, the Province Government has allocated a budget to ensure vaccine against Covid-19 to all the citizens.

All district hospitals of the province would be upgraded from 25 to 50 beds and Dhaulagiri Hospital in Baglung would be upgraded into a 200-bed general hospital. Similarly, all the district hospitals will have two to five intensive care unit (ICU) beds and budget for this has been allocated.

Madhya Bindu Hospital of Nawalpur, Damauli Hospital of Tanahun, Dhaulagiri Hospital and Bhirkot City Hospital of Syangja in the major country’s highways would be upgraded as the trauma centers and budget has been allocated accordingly, he said.

Anppipal Hospital of Gorkha would be made of 50 beds and construction of a teaching hospital with 500 beds in Gandaki University would be initiated by preparing a detailed project report (DPR).

In the hospital under the province government, citizens above 65 years would be provided with free medical care.

Similarly, contribution-based social security programs would be implemented with the partnership of the Federal Government and Rs 50 million has been allocated for the establishment of Social Security Fund.

Likewise, the children who lost their parents due to Covid-19 would be provided with Rs 5,000 in cash on a monthly basis while Rs 50,000 would be provided to the family for the casualty caused due to Covid-19.

The Chief Minister said that budget has been allocated for the establishment of a cultural museum of Kumal ethnic community.

The budget has also announced programs for tourism related activities, good governance, public service delivery, youth entrepreneurship, employment generation, infrastructure development in the province.

Lumbini province govt presents budget of Rs 40.95 billion

Lumbini Province government has presented a budget of Rs 40.95 billion for the upcoming fiscal year. Minister for Economic Affairs and Planning Baijnath Chaudhary presented the budget today prioritizing containing Covid-19 pandemic and infrastructure development as well.

While presenting the budget, Minister Chaudhary shared that the government’s priority was to contain the pandemic adding that the developmental activities could be forwarded if the situation returns to normalcy. The government has said it will upgrade the hospitals and strengthen the treatment system and manage the motivational allowances to health workers. The government has allocated Rs 50 million to run free-of-cost blood transfusion in governmental hospitals.

Likewise, Rs 250 million have been allocated for the upgrade of the Lumbini Province Hospital. Similarly, Rs 50 million has been allocated to construct a trauma center in Lamahi Dang. Rs 20 million budget has been allocated for the Dang Provincial Ayurveda Hospital and Lumbini Ayurvedic Hospital.

Likewise, Rs 680 million has been allocated to develop internal tourism in all 12 districts in the province. The government has allocated Rs 110 million for the sustainable development of the forest in the province. Furthermore, Rs 440 million has been allocated to improve education in community schools. Minister Chaudhary shared that Rs 640 million has been allocated to upgrade 19 main road networks in the province.

Similarly, Rs 500 million has been allocated to construct 840 new houses after completing the ongoing 772 houses construction. Minister Chaudhary shared that Rs 80 million has been allocated to make the province self-reliant in dairy products and Rs 350 million to develop smart agriculture villages in the province.

Karnali govt announces budget of Rs 36.54 billion for fiscal 2021/22

The Karnali Province government had presented a budget of Rs 36.54 billion for the upcoming fiscal 2021/22. Minister for Economic Affairs and Planning Gopal Sharma presented the budget today prioritizing containing Covid-19 pandemic, promoting agricultural development, infrastructure development among others.

According to Minister Sharma, Rs 21.65 billion has been allocated towards capital expenditure while Rs 11.49 billion towards current expenditure. The budget is about three billion larger in comparison to the current fiscal year budget.

The budget further states that Rs 3. 39 billion has been allocated for fiscal transfer to local levels in the province. The province government has estimated to receive Rs 600 million from internal revenues in the upcoming year.

Photo: RSS


While presenting the budget, Minister Sharma said that the budget was prepared to prioritize the health, agriculture, employment generation, infrastructure development, and revitalization of economic activities slacked by the Covid-19 pandemic.

He added that over Rs 530 million has been allocated to contain the pandemic. Minister Sharma further shared that the government was prioritizing upgrading the hospitals in the province. He announced to upgrade Surkhet hospital to a 500-bed hospital while Dolpa, Humla, and Mugu hospitals to 50-bed hospitals and Salyan Hospital to a 100-bed hospital.

The budget has stated to establish oxygen plants and health desks in different locations in the provinces. For the holistic upgrade of the health system in the province, Rs 2.61 billion has been allocated in the budget.

Similarly, the government has allocated Rs 7.29 billion towards infrastructure development and upgrading the transport system in the province.

Sudurpaschim province presents budget of Rs 30.34 billion

The Sudurpaschim Province Government has appropriated a budget of around Rs 30.34 billion to implement the policy and program presented for the fiscal year 2021/22.

Unveiling the budget for the upcoming fiscal year, Minister for Economic Affairs and Planning Prakash Bahadur Shah shared that the budget has allocated over Rs 10.66 billion towards the recurrent category and over Rs 17.65 billion towards the capitalized category. Likewise, the budget has appropriated Rs 1.724 billion for inter-governmental transfer and Rs 300 million for the financial management category.

Among the sources of revenue estimated for the upcoming fiscal year are Rs 1.08 billion from Inland Revenue, Rs 7.929 billion from revenue allocation of the federal government, and Rs 39.4 million from the federal royalty division.

Likewise, the provincial government will receive a fiscal equalization grant of Rs 8.544, a conditional grant of Rs 4.193 billion, a complementary grant of Rs 1.23 billion, and a special grant of Rs 613.5 million from the federal government.
The budget has laid emphasis on the health sector for the upcoming year. Among other prioritized sectors are agriculture development, education, and physical infrastructure development.

The key objectives of the budget are to ensure balanced and quality development of all types of health services at the province and local levels, protect the lives of the citizens and guarantee equal access of all citizens to the health services, improve quality of life, increase production and productivity of agriculture, promote agro-based enterprises and improve services related to education, drinking water, energy, and roads.

The budget has adopted the three pillar economy to fulfill the priorities of the budget. The highest chunk of budget Rs 11.75 billion has been allocated for the Ministry of Physical Infrastructure Development.