The Madhesh Province government has officially announced an annual budget of Rs 41 billion 138 million 600 thousand for the upcoming fiscal year 2026/27 (2083/84). Minister for Economic Affairs, Yuba Raj Bhattarai, presented the financial estimation and allocation plan before the Provincial Assembly on Monday.
In the budget breakdown, the provincial government has prioritized development by allocating the largest share to capital expenditure. A total of Rs 26 billion 475 million 371 thousand, which accounts for 64.36 percent of the total budget, has been earmarked for capital spending. Meanwhile, current expenditure for administrative and operational costs has been set at Rs 14 billion 663 million 200 thousand and 29 thousand, representing 35.54 percent of the total allocation.
To finance these expenses, the government plans to rely heavily on federal transfers and local revenue streams. Minister Bhattarai projected that Rs 12 billion 830 million will be received through revenue sharing from the federal government, while internal revenue collection and miscellaneous receipts are expected to generate Rs 11 billion 220 million 75 thousand. Additionally, the province aims to secure Rs 9 billion 495 million 900 thousand from federal fiscal grants and utilize Rs 6 billion 85 million 200 thousand from the remaining cash balance of the current fiscal year.
To bridge the final deficit after mobilizing all internal and federal resources, the provincial
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