Lumbini Province Tables Rs. 38.91 Billion Budget for FY 2025/26

The Lumbini Province government has unveiled a budget of Rs. 38.91 billion for the Fiscal Year 2025/26 during the 13th meeting of the sixth session of the Provincial Assembly.

Presenting the budget, Provincial Minister for Economic Affairs and Planning Dhanendra Karki allocated Rs. 12.1 billion (30.88%) for recurrent expenditure, Rs. 23.47 billion (60.32%) for capital expenditure, and Rs. 3.42 billion (8.80%) for financial transfers.

Guided by the vision of "Prosperous Lumbini: Happy Citizens," the budget prioritizes major infrastructure projects, including drinking water and road development. It also emphasizes key sectors such as agriculture, tourism, and education to promote sustainable and inclusive economic growth.

Among ministries, the Ministry of Physical Infrastructure Development received the highest allocation at Rs. 9.92 billion, followed by the Ministry of Urban Development and Water Supply with Rs. 5.62 billion, and the Ministry of Health with Rs. 4.95 billion. Other notable allocations include Rs. 3.61 billion for Social Development, Rs. 2.68 billion for Energy, Water Resources and Irrigation, and Rs. 1.5 billion for Agriculture, Land Management and Cooperatives.

To finance the budget, the province has projected Rs. 7.78 billion from internal revenue, Rs. 11.86 billion from federal revenue sharing, Rs. 415 million from royalties, and Rs. 2.82 billion from local-level shared revenue. It also expects to receive Rs. 8.44 billion in fiscal equalization grants, Rs. 4.66 billion in conditional grants, Rs. 514 million in complementary grants, and Rs. 400 million in special grants. An additional Rs. 2 billion will be mobilized from the current fiscal year’s cash reserves.