Key Takeaways:

• Rs 37.70 billion for the fiscal year 2026/27
• Budget presented nearly three months after the fiscal year began
• The previous budget failed to pass amid disputes between the Nepali Congress and CPN-UML
• Rs 9.65 billion in estimated unspent funds from the previous fiscal year

DHANGADHI, OCTOBER 11 Sudurpaschim Province's government presented a Rs 37.70 billion budget for the fiscal year 2026/27 on Sunday, nearly three months after the fiscal year began, following prolonged political disputes over budget allocations. Economic Affairs Minister Chakra Bahadur Malla presented the budget at a Provincial Assembly meeting. The government's earlier budget, presented in June by the administration led by then Chief Minister Kamal Bahadur Shah, could not be passed because of disputes within the coalition of the Nepali Congress and CPN-UML. A new government led by Khagaraj Bhatta was formed on August 14 through an alliance between the CPN-UML and the Nepali Communist Party. However, disagreements over the budget's size, project selection and ministry-wise allocations continued within the coalition and among Cabinet members. The prolonged deadlock left the province without an approved budget for nearly three months, affecting routine administrative work as well as development projects and programmes. The government expects to finance the budget through several sources, including Rs 1.72 billion in internal revenue, Rs 10.25 billion from the federal government's revenue-sharing mechanism and Rs 70 million from the sharing of federal royalties. The budget estimates Rs 9.06 billion in fiscal equalisation grants from the federal government. It also includes Rs 9.65 billion in funds expected to remain unspent from the previous fiscal year. Other projected sources include Rs 6.04 billion in conditional grants, Rs 388 million in federal matching grants and Rs 527.6 million in special grants. The budget will now be discussed in the Provincial Assembly before it can be passed. Approval would allow the provincial government to resume regular budget-funded activities and advance development plans and programmes.