The Gandaki Province government has unveiled a budget of Rs 31.97 billion for the upcoming fiscal year 2025/26. 

Presenting the budget at the Provincial Assembly on Sunday, June 15, Minister for Economic Affairs Dr. Tanka Raj Gurung outlined the province’s financial plan, which is slightly lower than the Rs 32.97 billion budget announced for the current fiscal year.

Capital expenditure has received the largest share, with Rs 19.09 billion or 59.7 percent of the total budget.

Similarly, Rs 12.63 billion (39.5 percent) has been earmarked for recurrent expenditure. And Rs 250 million (0.8 percent) has been set aside for financial management.

To fund the proposed spending, the provincial government anticipates  receiving Rs 7.93 billion in fiscal equalization grants from the federal government and Rs 9.79 billion from revenue sharing. Other expected sources include Rs 498.9 million from royalties, Rs 3.35 billion in conditional grants, Rs 639.7 million in complementary grants, and Rs 498.6 million in special grants.

Read: Koshi Province Unveils Rs 35.87 Billion Budget for FY 2025/26

Internal revenue collection is projected at Rs 5.45 billion, while Rs 2.24 billion will be carried over from existing cash reserves. 

To bridge the remaining gap of Rs 1.75 billion, the province plans to raise funds through internal borrowing.

Programmes under the Ministry of Physical Infrastructure Development and Transport Management have been allocated Rs 11.98 billion.

Other allocations include Rs 3.88 billion for the Ministry of Energy, Water Resources, and Water Supply, and Rs 3.32 billion for the Ministry of Health. The Ministry of Social Development, Youth, and Sports has been allocated Rs 2.39 billion, while Rs 2.08 billion has been earmarked for the Ministry of Agriculture.

The Ministry of Forest and Environment has been allocated Rs 1.06 billion, and Rs 842.1 million has been set aside for the Ministry of Industry and Tourism.