The Koshi Province government on Sunday, June 15, presented a budget of Rs 35.87 billion for the upcoming fiscal year 2025/26. The new budget represents a 1.7 percent increase from the original allocation for the current fiscal year and a 12 percent rise from the revised estimate. The provincial economy is projected to grow by 3.34 percent during the current fiscal year.

Presenting the budget at the Provincial Assembly, Minister for Economic Affairs and Planning Ram Bahadur Magar said the government has allocated Rs 18.67 billion (52 percent) for recurrent expenditure, Rs 17.1 billion (47.7 percent) for capital expenditure, and Rs 100 million (0.3 percent) for fiscal management. Of the total, Rs 4.7 billion has been allocated for fiscal transfers to local governments.

To finance the expenditure plan, the province aims to collect Rs 5.5 billion from internal revenue, Rs 12.39 billion through revenue-sharing, Rs 8.98 billion as fiscal equalization grants from the federal government, and Rs 4.57 billion in conditional grants. It also expects to receive Rs 391.7 million in complementary grants and Rs 557.2 million in special grants. The remaining resource gap of Rs 3.13 billion will be bridged through cash carryover from previous years.

The largest share of the budget—Rs 10.57 billion—has been allocated for road infrastructure and urban development. The funds will be used for multi-year roads and motorable bridge projects, construction of suspension bridges, and government  and other buildings.

The province has also prioritized energy, irrigation, drinking water, and sanitation, allocating Rs 4.73 billion to these sectors.

For the health sector, Rs 3.51 billion has been earmarked. The government will spend Rs 36.1 million on medicine procurement and Rs 30 million to establish and operate a herbs production and processing center in Khotang in collaboration with the private sector. A policy to provide free treatment to children under 10 years of age at government hospitals has been introduced, along with plans to expand mental health services across all provincial hospitals and continue the school nursing program.

In the tourism, forests, and environment sectors, the province has allocated Rs 2.97 billion. This includes Rs 100 million to support “Tourism Year 2082,” which Koshi Province announced earlier in the year.

A total of Rs 2.18 billion has been allocated for agriculture, industry, and cooperatives. Rs 166.5 million has been set aside to promote fruit production, processing, and marketing in collaboration with local governments and the private sector. To ease access to agricultural loans, Rs 140 million has been allocated for interest subsidies. Another Rs 220 million will be spent under the “Good Animal Husbandry Program” to support livestock farming and epidemic control.

Furthermore, Rs 2.05 billion has been allocated for education, sports, culture, employment, and inclusiveness, aiming to promote equitable growth, strengthen educational services, and create opportunities for youth and marginalized communities.