Government Reduces Infrastructure Ministry Budget, Prioritizes Key Projects
english.ratopati.com · Fri May 29 14:01:01 GMT 2026

Kathmandu. The government has made some cuts to the budget of the Ministry of Physical Infrastructure Development for the upcoming fiscal year 2083/84. The budget presented by Finance Minister Dr. Swarnim Wagle in a joint session of the Federal Parliament on Friday has allocated a total of 3 kharba 2 arba 83 crore 52 lakh rupees for this ministry, which is approximately 1 arba 39 crore 94 lakh rupees less than the previous fiscal year. In the previous fiscal year, 3 kharba 4 arba 23 crore 46 lakh rupees were allocated for this sector. Despite a slight decrease in the overall budget size, the government has given high priority to strategic road infrastructure, tunnel construction, and urban development programs. Finance Minister Wagle informed that despite resource constraints, the budget has been focused on productive and high-return large-scale projects.
What are the programs? The largest portion of the budget is focused on road infrastructure and urban development. A sum of 2 kharba 86 arba 48 crore rupees has been allocated for the road infrastructure sector alone. The government considers the upcoming year as a 'year to make a leap in road and tunnel construction'. The budget has set an ambitious target of blacktopping approximately one thousand kilometers of roads and completing the construction of 275 road bridges within the next year. To fulfill the commitment of upgrading the East-West Highway, considered the economic backbone of the country, to four lanes within the next five years, 37 arba 46 crore rupees have been allocated this year. This year, the upgradation of the Kamala-Kanchanpur and Narayangadh-Butwal road sections will be completed, and in the following year, the government has announced the upgradation of 80 kilometers of roads under the Kakadvitta-Lauhi, Kamala-Bagmati, Butwal-Gorusinghe, and Dhanakhola-Lamahi sections. Similarly, the upgradation of the Bagmati-Pathlaiya, Narayangadh-Hetaunda, and Gorusinghe-Chandrauta sections will be started. The study for the upgradation of the Pakali-Kanchanpur, Chandrauta-Dhanakhola, and Kohalpur-Gadda Chowki road sections will be completed. The Kathmandu-Terai-Madhesh Expressway has announced the completion of 40 bridges and 5.4 kilometers of tunnels in the upcoming year. The budget statement mentions the commencement of link road construction for the expressway. Additionally, 17 arba 64 crore has been allocated for the Fast Track. The Hulasi Highway is targeted for completion within the next three years, and under this, 8 road bridges will be completed by widening the highway in densely populated areas. A sum of 4 arba 65 crore rupees has been allocated for this highway. 1 arba budget has been arranged for the upgradation of the Surkhet-Jumla-Gamgadhi road under the Karnali Highway. The construction of the Pushpalal (Mid-Hilly) Highway will be completed within the next three years, and 2 arba 16 crore rupees have been allocated for the upgradation of 65 kilometers of road and the construction of 5 bridges under it. 1 arba 46 crore rupees have been allocated for blacktopping 25 kilometers of road and constructing bridges under the Madan Bhandari Highway.
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