KATHMANDU: All seven provincial governments have collectively announced a budget of Rs 278.67 billion for the upcoming fiscal year, representing a reduction of Rs 919.3 million compared to the allocation for the current fiscal year. This marks the second consecutive year of budget reduction by the provincial governments, with the FY 2021/22 budget amounting to Rs 305.46 billion, followed by Rs 279.61 billion for the ongoing fiscal year. Despite this overall reduction, Bagmati Province and Sudurpashchim Province have increased their budget sizes, highlighting varying approaches to fiscal planning among the provinces.

Priorities outlined in the budget allocations by the provincial governments encompass a spectrum of sectors, with particular emphasis on agriculture, employment generation, infrastructure development, tourism promotion, and entrepreneurship initiatives. Across the board, the provinces have allocated Rs 161.41 billion for capital expenditure and Rs 99.62 billion for recurrent expenditure, alongside an allocation of Rs 17.86 billion for debt financing and transfers, demonstrating a commitment to both development projects and ongoing operational needs.

Bagmati Province leads the pack with the largest budget of Rs 64.54 billion for FY 2024/25, featuring significant increases in both recurrent and capital expenditure. Madhesh Province, meanwhile, has earmarked Rs 43.89 billion, focusing on tourism promotion with the declaration of 2082 BS as Tourism Year and the launch of the 'Visit Madhesh, Understand Madhesh' campaign. Similarly, Sudurpaschim Province has introduced a budget of Rs 31.62 billion, with allocations for recurrent expenses and capital expenditure aimed at addressing various developmental needs.

The remaining provinces - Karnali, Lumbini, Gandaki, and Koshi - have also unveiled their respective budgets, each tailored to address regional priorities and developmental challenges. These budgets reflect a blend of continuity in ongoing initiatives and adaptation to emerging needs, underscoring the provinces' commitment to effective fiscal management and sustainable development agendas.