Himal Press 
BUTWAL: The Lumbini Province Government has brought a budget of Rs 38.91 billion for the fiscal year 2025/26, which begins in mid-July.
Of the total budget, Rs 12.01 billion (30.88%) has been allocated for recurrent expenditure and Rs 23.47 billion (60.32%) for capital expenditure. Similarly, an estimated Rs 3.42 billion (8.80%) has been earmarked for financial transfers.
To fund the expenses, the provincial government expects to mobilize Rs 7.78 billion from internal revenue, Rs 11.86 billion from federal revenue sharing, Rs 415 million from royalties from the federal government and Rs 2.82 billion from revenue shared by local levels. Similarly, the provincial government expects to get Rs 8.44 billion from fiscal equalization grants, Rs 4.66 billion from conditional grants, Rs 514 million from supplementary grants and Rs 400 million from special grants from the federal government. It aims to meet the resource shortfall of Rs 2 billion from the cash balance of the current fiscal year.
Presenting the budget at the 13th meeting of the 6th session of the Lumbini Provincial Assembly on Sunday, Minister for Economic Affairs and Planning Dhanendra Karki outlined the government’s priorities.
According to Minister Karki, the budget aims to fulfil the province’s long-term vision of a “Prosperous Lumbini: Happy Citizens”. Key priorities include boosting agricultural production and productivity, ensuring access to quality education and healthcare, promoting entrepreneurship, developing sustainable infrastructure, fostering inclusive development with social justice, and creating productive employment to reduce poverty and economic inequality, Karki added.
The provincial government has earmarked Rs 950 million as fiscal equalization grants, Rs 982 million as supplementary grants, and Rs 150 million as special grants to local units. Similarly, Rs 1.34 billion has been allocated for conditional grants to be transferred to local levels. A total of Rs 4.72 billion, including grants and royalty sharing, is projected to be transferred to local units in the new fiscal year.
