Kathmandu-Finance Minister Yubaraj Bhattarai presented a Rs 49.24 billion budget for Madhesh Province for the fiscal year 2026-27 in the Provincial Assembly on Sunday.

The budget allocates Rs 14.41 billion for recurrent expenditure and Rs 32.72 billion for capital expenditure.

Although the province introduced a Rs 46.58 billion budget for the current fiscal year, implementation has remained weak. For the upcoming fiscal year, the provincial government plans to mobilize Rs 41 billion excluding federal grants.

The government aims to collect Rs 11 billion from internal revenue, receive Rs 12 billion in federal revenue sharing, secure Rs 9 billion in fiscal grants, generate Rs 6 billion through resource management, and use Rs 1 billion from the current year's savings.

Bhattarai said the budget prioritizes education, health, and infrastructure development. The government has also included programs to boost agricultural production and promote tourism.

The province will not fund new projects costing less than Rs 10 million, except for ongoing multi-year projects. The government introduced this threshold to improve spending efficiency and focus on larger development initiatives.

The budget includes plans to construct concrete bridges in every constituency, build electric vehicle charging stations, improve disaster preparedness, and make public buildings accessible to all.

To address drinking water shortages, the province will install deep-bore water systems in coordination with local governments. It has allocated Rs 3.77 billion for drinking water projects and Rs 12 billion for physical infrastructure development.

The government also plans to fully digitize transport office services and has allocated Rs 330 million for labor transportation programs.

In addition, the province announced that it will reduce the Provincial Council of Ministers to nine members and align provincial structures with federal government best practices.