Himal Press 
SURKHET: The Karnali Province Government has unveiled a budget of Rs 32.99 billion for the fiscal year 2025/26.
Although the budget presentation was originally scheduled for 3 pm on Sunday, opposition parties—CPN (Maoist Center), Rastriya Prajatantra Party (RPP) and CPN (Unified Socialist)—obstructed the Karnali Provincial Assembly meeting. Because of this, the assembly could convene only at 11:47 pm. Lawmakers obstructed the assembly session, stating that several projects recommended by districts were excluded from the budget, and assembly members were not allowed to review the projects shortlisted by the Provincial Project Bank.
Presenting the budget, Minister for Economic Affairs and Planning Rajiv Bikram Shah said the province has increased the budget by 6% compared to the current fiscal year. Of the total allocation, Rs 7.79 billion (23.64%) has been set aside for recurrent expenditure and Rs 19.98 billion (60.55%) for capital spending. A further Rs 610 million (1.86%) has been earmarked for financial management, while Rs 4.58 billion (13.95%) will be transferred to local governments through fiscal transfers.
To fund the proposed expenditure, the provincial government expects to raise Rs 967.4 million from internal revenue and mobilize Rs 5.70 billion in unspent savings from the current fiscal year. It expects to receive Rs 10.27 billion through federal revenue sharing and Rs 10.56 billion through fiscal equalization grants. An additional Rs 4.45 billion is expected to be received as conditional grants from the federal government.
The province will also mobilize Rs 539.7 million in matching grants and Rs 494.6 million in special grants. Excluding conditional foreign aid routed through the federal government, Rs 18.7 million will be sourced from other foreign assistance to support project implementation.
Minister Shah said that the budget prioritizes poverty reduction through increased productivity and income generation. He added that the government will focus on building sustainable, high-return physical infrastructure, attracting investment through adequate infrastructure and incentives, and creating employment opportunities by developing and utilizing quality human capital and promoting entrepreneurship. The budget also aims to strengthen public service delivery and good governance, according to Shah.
