What Budgets Have the Provincial Governments Prepared?

May 10, Kathmandu – Since the inception of federalism in Nepal, this is the first time that the federal and provincial governments have prepared their budgets representing entirely different political parties.

The federal government, led solely by the Rastriya Swatantra Party (RSWP), has presented the budget for the upcoming fiscal year 2083/84. The provincial governments will announce their respective budgets for the same period on Ashad 1, 2083 (mid-June 2024), largely based on the federal budget’s resource allocations. Notably, RSWP does not have a presence in seven provinces.

Provinces led by legacy parties appear to be aligning their forthcoming budgets with the federal budget. All provinces have already submitted their annual policy and appropriations bill principles to their respective assemblies.

Based on these documents, provincial governments have indicated a shift towards good governance in their upcoming budgets. There is an emphasis on enhancing the effectiveness of project banks, prioritizing project implementation, and ensuring timely completion of development projects.

Koshi Province: Kechana-Sagarmatha Expressway and Chatara-Lukla Railway

Koshi Province’s policy and program for fiscal year 2083/84 focuses on expanding internal revenue scope, financial good governance, and ensuring resource management for sustainable development through policy and institutional reforms.

Special programs will be implemented to reduce increasing migration and promote sustainable settlement. The province plans to emphasize infrastructure development centered on education, health, agriculture, physical infrastructure, and information technology.

Koshi aims to promote project development and implementation through public-private partnerships and investments from the private sector, with tourism as a key focus for local economic development.

To ensure timely project completion, procurement policies will include deadlines and monitoring schedules.

The provincial government has prioritized feasibility studies of the Kechana-Sagarmatha Expressway and the Chatara-Chaurikharka (Lukla) railway. Additionally, the upcoming year has been declared as Koshi Province Tourism Year.

Madhesh Province: Commitment Against Fragmented Projects

Madhesh Province is preparing its budget with sustainable development targets in agriculture, industry, and tourism. According to the policy presented to the provincial assembly, the province aims to develop itself as a ‘Made in Madhesh, Prosperous Province’ delivering food to the nation.

Policies include establishing agricultural collection centers, cold storage centers, and milk chilling centers in every local unit. The province is committed to implementing policies preventing fallow land and encouraging productive land use through the provincial land bank concept.

The forthcoming budget will feature a program honoring employers and industrialists who provide employment to at least 1,000 people.

Madhesh plans to establish a one-stop industrial and investment service center through its budget. A regional investment conference will also be organized to attract direct foreign investment and operate major projects.

Budgets will support infrastructure upgrades in industrial areas and corridors and will include the preparation of a digital industrial profile.

To promote entrepreneurship among youths, Madhesh will offer technological assistance, loans, and grants through the Madhesh Startup Fund.

Madhesh intends to prepare its budget centering human development alongside physical infrastructure development, prioritizing education and allocating adequate funds to health sectors.

To prevent untimely deaths of children caused by drowning in ponds, wells, canals, reservoirs, rivers, and construction trenches, awareness programs for risk reduction and prevention will be launched.

The policy also mandates the exclusion of fragmented projects from the upcoming budget and prioritizes the distribution and expansion of electric vehicles. Additionally, a regional transportation master plan will be developed to connect rural and urban areas, promoting electric vehicles.

Bagmati Province: Implementation of Digital Crime Tracking System

Bagmati Province’s policy and program focus on good governance, transparency, and results-oriented public administration for the fiscal year 2083/84.

The province plans to introduce a Chief Minister’s Innovation Program next year, including the operation of a ‘Hello CM Desk’ to address citizens’ grievances.

There are plans to integrate and systematize public expenditure standards, project selection criteria, multi-year project management, and project bank legal frameworks.

Online project monitoring systems will be developed and implemented, alongside the rollout of an electronic transformation action plan.

The budget aims to increase efficiency in allocation, effectiveness in implementation, and financial discipline.

Special programs for municipal human development and economic transformation will be carried out. The digital crime tracking system will also be introduced.

Moreover, the province is preparing to implement the concept of ‘Bagmati Province: A Province Where the Poor Thrive.’ Each electoral area will have a major tourist destination established.

Gandaki Province: Selfie Bridge at Phewa Lake and Glass Bridge at Rupa Lake

Gandaki Province is preparing its budget under the slogan ‘Self-reliant, Prosperous Province, Happy Residents.’ Investment promotion programs like Invest Gandaki are included in the policy and program.

The budget will emphasize agricultural modernization, mechanization, diversification, commercialization, and marketing. The province has announced the ‘Return to Village’ campaign to transform farmers into entrepreneurs and agriculture into industry.

Plans include developing an agricultural app for price control and implementing agricultural ambulance services. Work on land surveying and mapping of unregistered lands in collaboration with the federal government is also planned.

Coordination will be pursued with Nepal and local governments for scientific land reform and addressing squatter issues. Development of a religious tourism circuit and expansion of basic facilities like high-altitude health care at major tourist destinations are underway.

The provincial government is preparing to conduct feasibility studies and initiate construction of a selfie bridge at Phewa Lake and a glass bridge at Rupa Lake.

Gandaki aims to prioritize tourism aligned with its unique attributes. Policies to regulate domestic liquor production, branding, distribution, and cultivation of cannabis for medical and industrial purposes are also part of the agenda.

The province will prioritize health tourism and implement previously announced ride-sharing service regulations.

Lumbini Province: Prioritizing Agriculture

Lumbini Province is focusing its budget on the agricultural sector. The policy includes a plan for producing organic or indigenous crops in each local municipality.

The province plans to designate resource centers for specific productions within districts and run entrepreneurship programs to encourage youth participation in agriculture.

A digital system for industry registration, renewal, transfer, and cancellation will be introduced, alongside branding domestic products.

Lumbini is preparing to include a digital concept within its budget and expand the enterprise development fund. It also aims to benefit from the government’s ‘Visit Nepal 2085’ program.

Road projects included in the provincial road network master plan will be prioritized, along with a commitment to allocate sufficient funds for suspension bridge construction.

The province supports promoting electric vehicle use and will also emphasize science and innovation programs.

Karnali Province: Nepal’s Destination in the World, Karnali’s Destination within Nepal

Karnali Province is preparing a budget aimed at increasing agricultural production and productivity to achieve self-sufficiency in food production and promote exports.

The province plans to ensure equitable access to education, improve quality, and develop human capital. A ‘One Local Unit, One Agricultural School’ program will be implemented, with a goal to make Karnali self-reliant in indigenous crops.

To enhance forest product exports, a digital tracking system will be developed. The slogan ‘World’s Destination Nepal, Nepal’s Destination Karnali’ will be promoted in international markets.

The Sagarmatha Airport expansion plan will feature in the budget.

Karnali plans to prioritize startup loans and announced a ban on open plastic usage. Displacement of identified cable bridges will be managed to ensure safe movement.

In transportation services, the province will implement electronic payment systems, smart license printing and distribution, and coordinate with the federal government to establish an integrated transport management system.

The province pledges to be prudent in current and administrative expenditures and launch a zero arrears campaign.

Sudur Paschim Province: Transfers of Projects Below Rs. 2.5 Million to Local Levels

This province plans to develop and implement programs based on project selection criteria and a project bank. Budget allocation, facilitation, coordination, and regulatory mechanisms will be arranged to complete projects within the fiscal year.

The government will continue the public housing program and apply integrated settlement development concepts in areas with increasing migration. Tourism infrastructure will be prioritized in budgeting.

Projects costing less than Rs. 2.5 million will be handed over to local governments. Sudur Paschim plans to run a provincial startup program and organize a provincial investment and development conference in the upcoming fiscal year.

The housing program will be extended with integrated settlement development in high-migration areas, alongside budget prioritization for tourism infrastructure.

Central government-prioritized regions such as Api, Surma, Saipal, Khaptad, Ranisain, Badimalika, and Ramaroshan will see promotion and construction of safe trails included in the budget. Upgrades to district hospitals in Darchula, Bajura, Bajhang, Baitadi, Achham, and Doti will also receive budget emphasis.

Scholarship programs will continue. Policies to enroll Nepali seasonal workers going to India under employment insurance are also planned.