Koshi Province Allocates NPR 40.44 Billion Budget for FY 2083/84

Biratnagar. The Koshi Province government has allocated a budget of NPR 40.44 billion for the upcoming fiscal year 2083/84. This budget is 12.29 percent higher than the allocated budget of NPR 36.02 billion for the current fiscal year 2082/83. Despite the increase in budget size, the government has sought to control administrative and current expenses. The budget for development has significantly increased.

While NPR 20.42 billion was allocated for development in the current year, it has been increased by 21.52 percent to NPR 24.81 billion for the upcoming fiscal year.

The government appears to have attempted to control current expenses by making minimal increases. While NPR 15.60 billion was allocated for general expenses in the current year, only a marginal increase of 0.2 percent to NPR 15.63 billion has been allocated for the upcoming year.

In the process of controlling general expenses, the budget for committed expenses, which include government employee salaries, pensions, and social security, has been reduced by 19.44 percent compared to the current year. While NPR 6.07 billion was allocated for this heading in the current year, only NPR 4.89 billion has been set aside for the upcoming year. Similarly, financial transfer equalization grants have also seen a decline of 11.22 percent compared to the current year, with NPR 1.42 billion allocated for the upcoming year. However, conditional capital grants have seen a significant increase of 275.65 percent, rising from NPR 195.98 million in the current year to NPR 736.2 million for the upcoming year.

Looking at the ministry-wise allocation, the government has prioritized infrastructure development. The Ministry of Physical Infrastructure Development has received the largest share of the total budget, 30.63 percent, amounting to NPR 12.38 billion. The second priority, the Ministry of Water Supply, Irrigation, and Energy, has been allocated 15.54 percent of the total budget, amounting to NPR 6.28 billion.

For the social and public health sector, the Ministry of Health has been allocated 8.91 percent of the total budget, amounting to NPR 3.60 billion. The Ministry of Tourism, Forest, and Environment has received 8.64 percent of the total budget, amounting to NPR 3.49 billion, and the Ministry of Social Development has received 7.68 percent, amounting to NPR 3.10 billion. For the productive sector, the Ministry of Industry, Agriculture, and Cooperatives has been allocated 7.23 percent of the total budget, amounting to NPR 2.92 billion.

In this fiscal year, a minimal budget has been allocated to administrative and constitutional bodies. The Office of the Chief Attorney has received the least, 0.06 percent, amounting to NPR 23 million, while the Provincial Planning Commission has been allocated 0.22 percent, amounting to NPR 59 million.

The provincial government has allocated 13.73 percent of the total budget, amounting to NPR 5.55 billion, to local levels through financial transfers and grants from various ministries. Of this, NPR 2.92 billion has been allocated as direct grants to local levels.