Lumbini province’s income crosses Rs 26 billion

KATHMANDU: Internal revenue collection has been found improved in the first 11 months of current fiscal year 2025/26 in Lumbini Province.

Lumbini province government has collected Rs 5.14 billion as internal revenue till June 8 of the current fiscal year. It is 12 per cent up as compared to corresponding period of the previous fiscal year.

As per the budget presented by Minister for Economic Affairs and Planning, Dhanendra Karki, total Rs 26.75 billion has been deposited in province reserve fund till the period.

There is a system of depositing the amount received as grant, revenue disbursement from federal government and the internal sources of the province.

According to Lumbini government, total 17.47 billion has been spent so far in the current fiscal year which is 44.85 per cent of the total budget. Of the spent amount, Rs 10.11 billion is towards capital and Rs 7.36 billion towards current.

Out of Rs 1.93 billion provided to local levels under fiscal transfer, 56.42 per cent has already been spent. First-phase of works under Province Capital Management and Construction Project has been completed. The physical progress of the project is 100 per cent while financial progress has reached 95.58 per cent. Lumbini government has started providing services from recently constructed administrative building from May 4.

According to Minister Karki, the province’s economic growth rate is expected to be 2.87 percent in the current fiscal year.

The provincial government has made it clear that the growth rate has been affected because there could not be the expected growth in the agriculture sector as well as the sluggish expansion of the transportation, communication and trade sectors.

Last fiscal year, the province’s economic growth rate was 4.27 percent. The province’s total gross domestic product is estimated to reach Rs 937 billion in the current fiscal year. It is projected that Lumbini Province will contribute 14.2 percent to the national gross domestic product.

Similarly, electricity access is estimated to reach 98.6 percent and internet services expanded to about 80 percent of households.

The financial report states that the province’s revenue has significantly benefited from financial equalisation grants, conditional grants, special grants, supplementary grants and revenue sharing received from the federal government.