All seven provincial governments tabled their budgets for the upcoming fiscal year 2025/26, with total outlays ranging from Rs. 31.97 billion (Gandaki) to Rs. 67.47 billion (Bagmati). Despite varying fiscal sizes and priorities, all provinces emphasised capital expenditure over recurrent spending and aligned their policies toward infrastructure development, employment generation, and sustainable growth.

Madhes allocated the highest proportion (64 per cent) to capital expenditure with an aim to boost agro-industrial development and youth entrepreneurship, while Koshi’s nearly balanced split between recurrent and capital budgets is said to have growth approach. Sudurpashchim and Lumbini prioritised agriculture and tourism alongside physical infrastructure, whereas Gandaki stressed foreign investment, regional competitiveness, and private sector engagement. Likewise, Bagmati’s focus is scattered across tourism, sports, agriculture and health.

Most of the provinces rely heavily on federal revenue-sharing, conditional and equalisation grants, and unspent balances from the current fiscal year. Internal revenue mobilisation remains modest across all provinces, with some provinces like Koshi and Gandaki planning to bridge gaps through internal borrowing.

In contrast, Karnali failed to present its budget by 10:30 Sunday due to a political impasse, as the opposition CPN-Maoist Centre boycotted proceedings over disputes concerning project bank.