Size of upcoming budget to decrease in Gandaki

GANDAKI, MAY 18: The size of the budget for the upcoming fiscal year- 2025/26- is set to decrease in Gandaki Province due to a decline in equalisation grants and lower revenue collection.

The Provincial Resource Estimates Committee has recommended that the provincial government, which introduced a budget of Rs 32.97 billion in the current fiscal year, limit the upcoming budget to Rs 29.5 billion.

According to Dilliram Rizyal, Head of the Budget and Program Division at the Ministry of Economic Affairs, the budget ceiling has been reduced for each ministry, with the overall budget estimated to shrink by nearly Rs 3 billion. The decline in equalisation and supplementary grants has created pressure on budget formulation, and internal resource mobilisation within the province has not improved either.

With only two months remaining in the fiscal year, Rizyal noted that just 52 percent of the targeted revenue has been collected so far. He added that only around 70 percent of the projected revenue is expected to be realised by the end of the fiscal year.

However, the Provincial Policy and Planning Commission has stated that the provincial budget could increase depending on the size of the federal government’s upcoming budget. The commission has proposed a ceiling of Rs 9.48 billion for the Ministry of Physical Infrastructure and Transport Management alone—down from Rs 12.7 billion allocated to the ministry in the current fiscal year.

Budget formulation is also underway with ceilings set for other ministries:

• Rs 2.67 billion for the Ministry of Health

• Rs 1.35 billion for the Ministry of Social Development, Youth and Sports

• Rs 900 million for the Ministry of Forests and Environment

• Rs 650 million for the Ministry of Industry and Tourism

• Rs 1.15 billion for the Office of the Chief Minister and Council of Ministers

• Rs 133.6 million for the Ministry of Economic Affairs

Meanwhile, the provincial government is preparing the upcoming budget with priority focus on agriculture, tourism, and health. According to the Ministry of Economic Affairs, these priorities will be guided by the province's second five-year plan. Discussions have already begun with line ministries regarding budget formulation.

As per constitutional provisions, provincial governments are required to make their annual budget estimates public by mid-June.

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