Karnali Province Prioritizes Agriculture and Infrastructure with NPR 3.54 Billion Budget Announcement for FY 2083/84

June 15, Surkhet – Karnali Province government has announced a budget of NPR 3.53985 billion for the upcoming fiscal year 2083/84 (2026/27). Finance and Planning Minister Rajiv Bikram Shah presented the budget to the Provincial Assembly on Monday.

Minister Shah noted that this represents a 7.28 percent increase compared to the current fiscal year’s budget of NPR 3.299665 billion, emphasizing that this year’s allocation exceeds that amount.

He clarified that the budget focuses on development sectors such as agriculture, tourism, infrastructure, education, and health. Of the total budget, 58.38 percent, or NPR 2.0746712 billion, is allocated for development expenditures.

Recurrent expenses amount to NPR 860.4556 million, accounting for 24.31 percent of the total budget. Financial transfers make up NPR 554.728 million, or 15.67 percent.

According to Minister Shah, the government plans to collect NPR 850.59 million from internal revenue in the next fiscal year, while projecting savings of NPR 641.519 million from the current fiscal year.

Additionally, the province will receive NPR 1.0668549 billion as revenue share from the federal government, NPR 106.323 million from the financial integration fund, and NPR 567.25 million in conditional grants.

Supplementary grants amounting to NPR 66.78 million, special grants of NPR 48.56 million, and NPR 9.6 million in foreign aid from the federal government will also be utilized.

With infrastructure as the highest priority, Minister Shah allocated NPR 1.093811 billion to the Ministry of Infrastructure and Urban Development for this fiscal year, slightly less than last year’s NPR 1.1001 billion.

Most infrastructure projects in the budget continue previous initiatives. NPR 65 million has been set aside for 14 strategic road projects, and NPR 367.5 million for constructing 122 new suspension bridges.

A total of NPR 750 million has been earmarked for constructing consolidated administrative buildings within the province. NPR 370 million has been allocated for smart city development in Birendranagar (Surkhet), Narayan (Dailekh), and Duni (Dolpa).

For post-earthquake reconstruction and housing programs targeting marginalized communities in Jajarkot and Western Rukum, the budget provides more than NPR 340 million.

The Karnali government has allocated NPR 230 million to upgrade Surkhet Provincial Hospital into a health science institute. Additional funding is also provided for hospital infrastructure development and human resources management. Dialysis services will be expanded at Dailekh Hospital, and NPR 40 million is reserved for advanced treatment facilities across the province.

Maternal nutrition allowances will continue, and NPR 25 million has been allocated for treatment support targeting patients with complex diseases such as cancer, heart disease, kidney disease, and Alzheimer’s. Incentives for health volunteers supporting remote rural women have doubled, increasing the annual allowance to NPR 24,000. The Karnali overall health campaign will also emphasize Ayurveda and alternative medical systems.

In education, creative programs like ‘Book-Free Friday’ will be sustained. NPR 70 million has been allocated to introduce digital learning technology in community schools experiencing teacher shortages, along with NPR 50 million for recruiting expert teachers in mathematics, science, and English.

NPR 50 million has been set aside for preparations for the 10th Provincial Sports Festival, and NPR 37.5 million for stadium management. Additionally, NPR 50 million has been allocated to establish a modern library at Mid-Western University. The Ministry of Social Development’s budget exceeds NPR 610 million.

Agriculture and livestock remain major priorities. NPR 330 million is dedicated to promoting agricultural commercialization and NPR 80 million for livestock improvement programs. NPR 120 million is allocated for sheep and goat farming in mountainous regions, and NPR 40 million for fish farming in Surkhet.

The ‘One Village, One Fruit Garden’ program is supported with NPR 192.2 million, and NPR 19.6 million is reserved for agricultural modernization. A program aimed at farmers cultivating more than five hectares includes NPR 70 million worth of 100-percent interest rate subsidies.

Minister Shah reported NPR 70 million allocated for cotton farming in Surkhet and Mugu districts, NPR 40 million for livelihood support to impoverished citizens, and NPR 96 million for youth-oriented agricultural programs.

The Ministry of Land Management, Agriculture, and Cooperatives has been assigned a budget of NPR 2.528768 billion, compared to NPR 2.57 billion in the current fiscal year.

The minister emphasized prioritizing agricultural mechanization next year, focusing on modernization, reducing production costs, and increasing productivity.

The Ministry of Water Resources and Energy Development will receive NPR 481.958 million next fiscal year, up from NPR 383 million this year. The province has prioritized key drinking water projects including ‘One House, One Tap’.

To address longstanding water supply challenges in Birendranagar, NPR 300 million has been allocated for the Bheri Lift Drinking Water Project and the Jhalakunda Lift Scheme in Sharda Municipality. NPR 207.5 million is set for climate-concentrated drinking water and sanitation programs across three districts.

Various irrigation schemes have been allotted NPR 66.3 million, while NPR 203.39 million is designated for multi-purpose projects from Bulbule to Nikas River in Surkhet. The Jumla-mul Lake multi-use project has an allocation of NPR 30 million. To secure provincial ownership in large hydropower projects, NPR 500 million has been reserved for share investments.

NPR 50 million has been allocated to expand Surkhet Airport, which is included in the province’s policy programs.

The government has planned to coordinate annually with the federal government to address the long-term needs for provincial airport development. However, no progress has been reported on the Surkhet Airport expansion so far.

In the budget speech, Minister Shah shared plans to initiate domestic flights connecting Surkhet Airport to other districts in Karnali and stated, “We aim to expand regular air service to other districts within the province in coordination with the federal government, and the necessary budget has already been allocated for this.”

Full Budget Speech: