The Civil Aviation Authority of Nepal (CAAN) has unveiled a budget of Rs 31.40 billion for the current fiscal year (FY 2025/26).

The aviation regulatory body made the announcement during a press conference on Wednesday, where CAAN provided a brief overview of its approved budget and programs. The new budget is Rs 2.72 billion less than last year’s allocation of Rs 34.12 billion.

Despite the overall reduction, CAAN has increased its capital expenditure allocation to Rs 12.40 billion, up from Rs 11.52 billion last fiscal year. Meanwhile, the operational budget has been set at Rs 6.16 billion, slightly down from Rs 6.53 billion the previous year. A total of Rs 12.85 billion has been allocated for financial management.

Speaking at the press conference, CAAN Director General Pradeep Adhikari stated that the authority is focusing on increasing capital expenditure while reducing operational costs. He emphasized the need to review airport fees and passenger service charges to enhance the authority’s revenue.

Adhikari also noted that CAAN’s resources have been shrinking and that budget allocations have been decreasing annually. He stressed the importance of effective resource management and informed that efforts are underway to ensure the effective operation of the international airports in Bhairahawa and Pokhara. -- RSS