KMC brings Rs 25.76 billion budget for fiscal year 2025/26

KATHMANDU: The Kathmandu Metropolitan City (KMC) has unveiled a budget of nearly Rs 26 billion for the upcoming fiscal year 2025/26.

Deputy Mayor Sunita Dangol presented the proposed budget of Rs 25.76 billion at the municipal assembly meeting in Kathmandu.

The total budget is slightly higher than the budget of Rs 25.70 billion that the metropolis introduced for the current fiscal year.

Although local governments are required to present their budgets by Asar 10 (June 24 this year) as per the Nepali calendar, the KMC failed to bring the budget within the stipulated timeframe due to a dispute between Mayor Balendra Shah and Chief Administrative Officer Saroj Guragain.

“To implement the KMC’s policies and programs, I present an estimated budget of Rs 25.76 billion for fiscal year 2082/83, including Rs 25.11 billion from the consolidated fund and Rs 650 million from external sources,” Deputy Mayor Dangol said.

According to the proposal, Rs 25.11 billion is expected to be collected in the consolidated fund. Of this, Rs 20.12 billion will come from internal revenue and the KMC’s bank reserves, while Rs 4.98 billion will come in the form of conditional, equalization and revenue-sharing grants from the federal and provincial governments.

In terms of sectoral allocation, 51% of the total allocation, or Rs 12.8 billion, has been proposed for infrastructure develoment, 20% (Rs 5.02 billion) for social development, 14% (Rs 3.51 billion) for administrative operations and office management and 3% (Rs 753.4 million) for economic development. Similarly, 12% (Rs 3.01 billion) has been set aside for governance and inter-sectoral coordination.