Lumbini Province Government Prepares Budget of Approximately NPR 37 Billion for Fiscal Year 2083/84

Butwal. The Lumbini Province government is in the final stages of preparing a budget of approximately NPR 37 billion for the upcoming fiscal year 2083/84.

Although preparations are underway to slightly reduce the budget size compared to the current fiscal year, the budget size has been increased from the initial estimate due to the inclusion of demands from various ministries and new plans. The province government had presented a budget of NPR 38.91 billion for the current fiscal year 2082/83, with NPR 23.47 billion allocated for capital expenditure and NPR 15.43 billion for recurrent expenditure.

According to sources from the Ministry of Economic Affairs, the ministries were initially sent a ceiling to present a budget of around NPR 35 billion based on revenue collection, grants from the federal government, and available resources.

However, in recent days, due to additional programs from various ministries, new plans, and political agreements, the budget is being prepared to be increased by approximately NPR 2 billion, bringing it to around NPR 37 billion. Sources indicate that although the initial preparation was for a limited budget size, it has been increased due to pressure from ministries, the need for development plans, and demands from members of the Provincial Assembly.

Dhanishwar Aryal, spokesperson for the Ministry of Economic Affairs, stated that although the budget size will be slightly smaller compared to the past, the final figure has not yet been determined. He informed that the budget preparation work is progressing rapidly and that despite recent leadership changes in the ministry, budget preparation has been prioritized.

The Provincial Government is preparing to present the budget for the upcoming fiscal year in the Provincial Assembly on Asar 1. The budget is scheduled to be presented by the Minister for Economic Affairs and Planning, Dhanendra Karki, at 5 PM during the ninth meeting of the eighth session of the Provincial Assembly.

An agreement has also been reached to increase the budget for the election constituency development plans of the Provincial Assembly members. Sources indicate that directly elected MPs have been given the opportunity to select plans worth up to NPR 40 million, and proportional MPs up to NPR 20 million. The process of including these plans in the budget through the respective ministries is underway. In the current fiscal year, the budget allocated was NPR 11 million for proportional MPs and NPR 30 million for directly elected MPs.

MPs had also put pressure on Chief Minister Chet Narayan Acharya by meeting him to increase the aforementioned amounts for the upcoming year. The final budget size and programs will be made public only after approval by the Council of Ministers.

What are the priorities for the Lumbini Province Budget?

The Lumbini Province government has stated that it is preparing the budget for the upcoming fiscal year keeping in mind limited resources, increasing liabilities, and the status of incomplete development projects. According to Ramji Ghimire, spokesperson for the Provincial Government, payment of liabilities, provincial pride projects, and multi-year and ongoing projects have been given high priority.

The Provincial Government has put forward Lumbini Provincial Hospital, Rampur-Kapurkot Road, Banke Technical University, and the Provincial Administrative Building as pride projects. Although the administrative building has been completed, the remaining projects appear to require significant budget allocation.

The main priorities of the upcoming budget include increasing production, creating employment, infrastructure development, good governance, and social justice. Special importance will be given to modernization of the agricultural sector, expansion of irrigation, promotion of organic farming, conservation of local and indigenous crops, and branding and value chain development of agricultural products. The budget is also preparing to include policies to increase agricultural production, substitute imports, and promote exports.

Plans to create employment through skill-based training, self-employment, and innovation programs targeting youth have also been prioritized.

In health, preparations are underway to continue the concessions provided for hospital upgrades, expansion of specialist services, and treatment of cancer, kidney transplants, and heart diseases. In education, budget allocations will be made for technical education, IT-friendly education systems, and sports infrastructure development programs.

Similarly, the budget aims to invigorate the provincial economy through tourism, industry, energy, and maximum utilization of local resources. The government states that the budget is being prepared based on the Provincial Government's Second Periodic Plan, Sustainable Development Goals, and the long-term vision of 'Prosperous Lumbini: Happy Citizens'.

Homraj Bhusal, Chairman of the Lumbini Economic Research Center, has suggested prioritizing programs that meet the actual needs of the people and provide high returns with low investment when preparing the budget. According to him, instead of large projects that the federal government can undertake, the province should focus investment on medium-sized projects directly linked to people's lives such as health, education, agriculture, tourism, and necessary bridges.