Federalism in Action as Provinces Chart Their Own Course

Two weeks after the federal government tabled its budget, all seven provincial governments have followed suit, unveiling their respective financial plans. Collectively, the provincial budgets amount to approximately Rs 287 billion. Bagmati Province leads with the largest budget, while Gandaki Province has the smallest. In accordance with constitutional provisions, all provinces announced their budgets on the same day, outlining their projected revenues and expenditures for the fiscal year. Each province has made efforts to incorporate unique elements into their budgets. While physical infrastructure remains a common priority across all provinces—mirroring the federal government’s emphasis—differences emerge in other policy areas, reflecting local needs and aspirations. Several provinces have introduced innovative, need-based programs in their budgets. Koshi Province focuses on youth employment and education for marginalized communities through initiatives like the "Daughters Empowerment Program." Gandaki continues its "First Homeland, Then Foreign Land" campaign and plans to regulate local liquor production to boost revenue. Madhesh has proposed wildlife-friendly water access, solar energy projects on riverbeds and district-level surface irrigation schemes. Lumbini emphasizes tourism, agriculture, and entrepreneurship, while Sudurpaschim prioritizes its "One Local Unit, Two Products" initiative, social justice, herbal medicine and cable car feasibility studies in major tourist sites.