All Seven Provinces Unveil FY 2082/83 Budgets: Low Revenue and Funding Constraints Key Challenges
Author
NEPSE TRADING
All seven provinces of Nepal have presented their annual income and expenditure estimates (budgets) for the upcoming fiscal year 2082/83. Most provinces tabled their budgets by the fiscal deadline, with Karnali Province presenting it just before midnight due to disruptions in the Provincial Assembly.
Like the federal government, the provinces are facing significant challenges in managing limited internal revenue and financial resources. Several provinces have shown unspent funds from the current fiscal year as sources of budget financing. Notably, Gandaki and Madhesh Provinces have introduced deficit budgets with plans to raise internal loans.
Karnali Province
Total Budget: NPR 32.99 billion (approx. 5% more than the previous year)
Recurrent Expenditure: 23.64%
Capital Expenditure: 60.55%
Intergovernmental Transfers: 13.95%
Sources: Internal revenue, unspent balance from the current year, and various federal grants (revenue sharing, conditional, equalization, etc.)
Sudurpaschim Province
Total Budget: NPR 33.47 billion
Recurrent: 30.49%
Capital: 59.25%
Intergovernmental Transfers: 10.24%
Sources: Federal grants, internal revenue, royalties, and surplus from the previous year.
Lumbini Province
Total Budget: NPR 38.91 billion
Recurrent: 30.88%
Capital: 60.32%
Financial Transfers: 8.80%
Sources: Federal revenue sharing, internal revenue, local-level transfers, and reserve funds.
Gandaki Province
Total Budget: NPR 31.97 billion
Recurrent: 39.5%
Capital: 59.7%
Plan to raise NPR 1.75 billion through internal loans.
Sources: Federal grants, internal revenue, royalty sharing, and unspent cash reserves.
Bagmati Province
Largest Budget: NPR 67.47 billion
Recurrent: 38.60%
Capital: 61.40%
Sources: Tax and non-tax revenue, federal grants, unspent balances, and miscellaneous income.
Madhesh Province
Total Budget: NPR 46.58 billion
Recurrent: 35.89%
Capital: 64.11%
Deficit of NPR 2 billion to be covered via internal loans
Sources: Internal revenue, federal grants (equalization, conditional, supplementary, and special), and savings from the current year.
Koshi Province
Total Budget: NPR 35.87 billion
Recurrent: 52%
Capital: 47.7%
Financial management: 0.3%
Koshi targets 5.3% economic growth in the coming fiscal year.
Sources: Internal revenue, federal grants, royalty sharing, and unspent budget from FY 2081/82.
The provincial budgets reflect a common pattern—high dependence on federal grants, low internal revenue generation, and underutilization of previous allocations. Strengthening revenue collection capacity and improving budget execution remain urgent priorities for provincial governments.
