Karnali Government Presents Budget of NPR 35.39 Billion for Fiscal Year 2083/84

Surkhet. The Karnali government has presented a budget of NPR 35.39 billion for the upcoming fiscal year 2083/84, of which NPR 8.60 billion (24.31%) is allocated for current expenditure and NPR 20.74 billion (55.31%) for capital expenditure.

Similarly, NPR 500 million (1.41%) is allocated for financial management and NPR 5.54 billion (15.67%) for financial transfer to local levels. The budget presented by the government is 7.28% higher than that of the current fiscal year.

The budget for the current fiscal year was NPR 32.99 billion.

The sources for the estimated expenditure for the upcoming fiscal year include NPR 850.59 million from internal income, an estimated NPR 6.41 billion from the savings of the current fiscal year, and NPR 10.66 billion from revenue sharing by the federal government.

Similarly, NPR 10.63 billion will be mobilized from the federal financial equalization grant, and NPR 5.67 billion from conditional grants. The mobilization of supplementary grants from the federal government will be NPR 660 million, and special grants will be NPR 480 million.

It is mentioned that NPR 960,000 will be mobilized from foreign aid other than foreign aid received as conditional grants from the federal government for the implementation of programs operated by foreign aid. Finance Minister Rajiv Bikram Shah presented the budget at the Provincial Assembly meeting on Monday. He stated that the guiding principles and priorities for budget formulation were based on the vision of good governance, social justice, and a prosperous Karnali, as well as the periodic plan of the province and the policy and program presented by the provincial government, aiming to realize the dream of a prosperous Karnali and happy Karnali residents.

The upcoming budget mostly continues previous programs and commits to improving some policy matters. While the budget for agriculture and infrastructure has been reduced, the budget for water resources, energy, and social development ministries has been increased.

Furthermore, many of the previous failed programs have been included in the new budget.

Organic farming heard less, modernization heard more in agriculture

Although Karnali has been prominently raising the slogan of an organic province in the past, the word has now disappeared from the budget. Modernization aspects are heavily included. This is also a continuation of the past. Finance Minister Shah stated that NPR 19.6 million has been allocated to continue the agricultural mechanization program to modernize agriculture, reduce production costs, and increase productivity.

Similarly, 100% subsidy on interest will be provided to entrepreneurs doing agricultural business on more than 5 hectares of land, and NPR 76.28 million has been allocated for farmers, groups, and cooperatives doing commercial farming and animal husbandry on less than 5 hectares.

The 'One Village, One Commercial Fruit Garden' program has been continued, and NPR 192.25 million has been allocated for the development of fruits such as apples, walnuts, oranges, kiwis, dragon fruits, and avocados.

NPR 71.5 million has been set aside for the promotion of cotton cultivation in Surkhet and Mugu and the establishment of agricultural and livestock resource centers in various districts.

“NPR 96 million has been allocated for the 'Youth Attraction to Agriculture' and constituency-specific youth-targeted programs based on commercial projects,” Shah said, “NPR 339.5 million has been allocated for small irrigation and digital agriculture: small irrigation, digital agriculture services, and model farms for natural agriculture.”

Such programs were continuing from the past.

NPR 83.65 million has been allocated for breed improvement, vaccination campaigns, stable improvement, and silage utilization, while NPR 121.7 million has been allocated for the cluster development of sheep and goats in Jumla, Humla, Kalikot, Mugu, and Dolpa.

Airport expansion talk resurfaces

Finance Minister Shah stated that under the Ministry of Industry, Tourism, Forest, and Environment, coordination will be done for the expansion of Surkhet Airport, and NPR 50 million has been allocated for it. This is a plan that has been included in budgets and policy programs almost every time in the past but has never been implemented.

This ministry has been allocated NPR 2.46 billion, with the most attractive program being the declaration of 'Karnali Decade' in tourism. Apart from this, most programs are new versions of previous ones.

“NPR 213.5 million has been allocated for the implementation of master plans for major destinations like Rara Lake in Mugu, Kakrebihar in Surkhet, and Kupinde Daha in Salyan,” Shah said, “Similarly, NPR 538.6 million has been set aside for overall tourism promotion.”

The 'Startup Business Loan' program has been introduced for young people with innovative thinking, for which NPR 41 million has been allocated. NPR 209 million has been allocated for climate change risk mitigation and NPR 271.5 million for integrated watershed management. Additionally, special budgets have been arranged for the conservation of endangered snow leopards and red pandas. The use of modern technology (drones) in forest security will be implemented, Minister Shah said.

Priority to complete previous work in physical infrastructure

The Karnali Singha Durbar construction plan has been continued, and most of the old programs are included in the road and infrastructure sector. Commitment has been made to complete the plans and programs that have created liabilities. A budget of NPR 10.93 billion has been allocated for physical infrastructure. Finance Minister stated that NPR 650 million has been allocated for 14 strategic road projects and NPR 367.5 million for the construction of 122 new suspension bridges.

NPR 370 million has been allocated to develop cities including Birendranagar, Narayan, and Dunai as 'Smart Cities'. This is a new program.

Earthquake Reconstruction and Housing: More than NPR 340 million will be spent on post-earthquake reconstruction and housing for the poor in Jajarkot and Rukum West. This year, the Ministry of Water Resources and Energy has been given a special budget.

This ministry has been allocated a budget of over NPR 4.81 billion. In the current fiscal year, this ministry had a budget of NPR 3.83 billion. Minister Shah stated that priority has been given to major drinking water projects like 'One House, One Tap' and Bheri Lifting.

“NPR 300 million has been allocated for the long-awaited Bheri Lifting Drinking Water Project and the Sharda Municipality's Jalkunda Lifting Project to solve the drinking water problem of Birendranagar, which is also the provincial capital,” he said. However, this is a previous program.

Similarly, NPR 207.5 million has been set aside to operate climate-resilient drinking water and sanitation programs in Salyan, Rukum West, and Mugu districts by reducing the impact of climate change. Minister Shah stated that NPR 30 million has also been allocated for the maintenance and restoration of old drinking water projects.

Small and medium-sized irrigation projects have been prioritized to increase agricultural production. NPR 66.3 million has been allocated for various irrigation schemes in Humla, Surkhet, Salyan, and Jumla. The budget mentions that NPR 203.39 million will be spent for the implementation of the multipurpose project from Bulbhule to Nikas Khola in Surkhet. NPR 30 million has been allocated to complete the Jumlyamul Tal multipurpose project in Jumla this year. These are previous failed programs.

Shah also stated that NPR 500 million has been allocated for share investment in large hydropower projects, with the provincial government also having ownership. NPR 88 million has been allocated for programs including the 'Karnali Province Janata Tatbandhan' to protect settlements at risk from floods and erosion.

The program to make Karnali Province Hospital a health science institute is also included in the health sector. This program, which has been included in the past, has not been implemented. Finance Minister Shah stated that a budget of NPR 230 million has been allocated for the construction of separate OPD buildings and other infrastructure at the hospital.

“NPR 25 million has been set aside for treatment assistance for patients with complex diseases such as cancer, heart, kidney, and Alzheimer's,” Shah said, “The incentive allowance for health volunteers has been increased to NPR 24,000.”

NPR 50 million has been allocated for the 10th National Games, and NPR 90 million has been allocated to complete the under-construction provincial stadium, Shah also said. This is a major project that has been stalled for the past year.

A budget of NPR 6.10 billion has been allocated to the Ministry of Social Development for the upcoming year.

Here is the full text of the budget: