Kathmandu Metropolitan City (KMC)—Nepal’s largest local body—has unveiled a Rs 25.76 billion budget for the upcoming fiscal year 2025/26, just five days before it begins on Thursday, July 17.
Deputy Mayor Sunita Dangol presented the budget during the 17th Municipal Assembly of the metropolis on Sunday, July 13.
Last year, KMC had announced a Rs 25.7 billion budget.
This year’s budget allocates more than half—Rs 12.80 billion—for infrastructure development. Another Rs 5.02 billion, or around one-fifth, has been earmarked for social development.
Administrative expenses and office operations will receive Rs 3.51 billion (14%), while Rs 3.01 billion (12%) is allocated for good governance and related sectors. Around 3%, or Rs 753.43 million, has been allocated for economic development.
According to the Local Government Operation Act and the Inter-Governmental Financial Management Act, local governments are required to submit their annual budgets by the 10th day of Asar (June 24 this year). KMC failed to do so, reportedly due to disputes between Mayor Balen Shah and Chief Administrative Officer Saroj Guragain.
Earlier the same day, Mayor Shah presented the city’s policies and programmes for fiscal 2025/26. He reiterated KMC’s commitment to transforming Kathmandu into an inclusive, well-governed, tech-friendly, safe, eco-conscious, and innovation-driven smart city.
Shah said incomplete plans and pending strategies from the current fiscal year would be carried forward. He also emphasised the finalisation of periodic, strategic, and sectoral policy frameworks.
Among the key economic priorities, Shah highlighted the "One Ward, One Production" initiative aimed at promoting local production, employment, and entrepreneurship, while creating an investment-friendly environment.
KMC also announced plans to establish quality Early Childhood Development Centres in all community schools. These centres will support the physical, mental, and social development of children through regular nutritious meals, teacher training, child-friendly infrastructure, and parental engagement.
A follow-up session to discuss and approve the budget is scheduled for Wednesday, July 16.
