The Government of Madhesh Province has announced a budget of Rs. 41.13 billion for the upcoming fiscal year 2083/84. The budget was presented on Monday during a meeting of the Provincial Assembly by Finance Minister Yuvraj Bhattarai.
The budget places greater emphasis on capital expenditure than on recurrent spending. Of the total allocation, Rs. 14.66 billion (35.54%) has been earmarked for recurrent expenditures, while Rs. 26.47 billion (64.35%) has been allocated for capital expenditures. The government has identified agriculture, education, healthcare, infrastructure development, and forestry sector improvement as its key priority areas.
Regarding resource mobilization, Finance Minister Bhattarai proposed financing Rs. 11.22 billion through internal revenue and provincial sources. The provincial government expects to receive Rs. 12.83 billion through federal revenue-sharing arrangements and Rs. 9.49 billion in fiscal grants from the federal government.
The budget also plans to utilize Rs. 6.08 billion from the remaining cash balance of the current fiscal year. To bridge the funding gap, the government intends to raise Rs. 1.50 billion through internal borrowing.
According to government projections, the province will receive a total of Rs. 17.59 billion in federal grants, including:
Rs. 7.84 billion under fiscal equalization grants,
Rs. 8.10 billion under conditional grants,
Rs. 947.4 million under complementary grants, and
Rs. 700 million under special grants.
The budget reflects the province’s commitment to strengthening economic development and improving public services through increased investment in productive and development-oriented sectors.
