Madhesh’s massive budget hampered by weak implementation
Summary
The Madhesh Province Government allocated the largest budget in eight years but has spent only 56.31 percent in fiscal year 2025/26, with weak implementation attributed to political instability and planning issues.
Key Points
- Madhesh Province Government allocated Rs 46.983 billion for fiscal year 2025/26 but spent only 56.31 percent by July 9, 2026.
- Capital budget expenditure (54.12 percent) lags behind current budget expenditure (60.69 percent) despite the former being prioritized.
- Political instability and misaligned budget formulation have negatively impacted budget spending and implementation.
- Finance Minister Yubraj Bhattarai defends expenditure rates, citing a deficit budget and lack of ensured sources.
