Kathmandu, May 29: The government has allocated a total budget of Rs 2,124 billion for the upcoming fiscal year 2083/84 (2026/27).
Presenting the annual budget at a joint session of the Federal Parliament, Finance Minister Dr Swarnim Wagle said that out of the total allocation, Rs 1,270 billion — or 59.8 percent — has been earmarked for recurrent expenditure.
Similarly, Rs 431.10 billion, equivalent to 20.3 percent of the total budget, has been allocated for capital expenditure, while Rs 422.64 billion — 19.9 percent of the total allocation — has been set aside for financial management. The estimated expenditure is around 25 percent higher than the revised estimate for the current fiscal year.
To finance the expenditure for the upcoming fiscal year, the government expects to raise Rs 1,405 billion from revenue and Rs 61.74 billion from foreign grants.
Of the remaining financing gap of Rs 657.29 billion, Rs 247.28 billion will be mobilised through foreign loans.
The remaining Rs 410 billion needed to bridge the gap between revenue mobilisation and foreign assistance will be managed through domestic borrowing. Since the government is expected to repay Rs 245.89 billion in principal on domestic debt next fiscal year, the net domestic borrowing is estimated at Rs 164.11 billion.
In accordance with financial transfer arrangements and based on recommendations from the National Natural Resources and Fiscal Commission, the government will provide Rs 61.50 billion in fiscal equalisation grants to provincial governments and Rs 90.20 billion to local governments in the upcoming fiscal year.
For infrastructure project implementation at the provincial and local levels, the government has allocated Rs 4.60 billion and Rs 8.93 billion respectively as matching grants.
Likewise, Rs 3.82 billion has been allocated as special grants for provincial governments and Rs 9.40 billion for local governments.
For the implementation of federal government projects, conditional grants worth Rs 49.72 billion will be distributed to provinces, while local governments will receive Rs 206.08 billion.
The government estimates that a total of Rs 175 billion will be transferred to provincial and local governments through revenue sharing.
Overall, more than Rs 600 billion in resources is projected to be mobilised at provincial and local levels through revenue sharing, royalties, and fiscal transfers in the upcoming fiscal year. #Nepal
Budget : Full Text
