Karnali Province Presents Rs 35.39 Billion Budget for FY 2026/27, Focus on Capital Investment and Local Transfers

The Karnali Provincial Government has presented its annual estimates of revenue and expenditure amounting to Rs 35.39 billion for the upcoming fiscal year 2026/27.

In today’s meeting of the Provincial Assembly, Minister for Economic Affairs and Planning Rajiv Bikram Shah unveiled the budget, outlining the province’s fiscal priorities for the new financial year.

According to the budget statement, Rs 20.74 billion has been allocated for capital expenditure, while Rs 8.60 billion has been earmarked for recurrent (current) expenditure. The budget reflects a 7.28 percent increase compared to the current fiscal year, indicating a gradual expansion in provincial spending.

Minister Shah also announced allocations of Rs 500 million for financial management and Rs 5.54 billion for fiscal transfers to local levels, aimed at strengthening local governance and development activities.

On the revenue side, the provincial government expects to mobilize Rs 855 million from internal revenue sources. Additionally, Rs 641 million and Rs 1.066 billion are projected from savings of the current fiscal year, while Rs 10 billion is expected from federal revenue sharing.

The budget emphasizes balanced fiscal management, increased capital investment, and enhanced coordination with local governments to support development initiatives across Karnali Province.