KATHMANDU, June 18: The Kathmandu Metropolitan City (KMC) has announced a budget of Rs 25.88 billion for the upcoming fiscal year (FY) 2026/27.
KMC’s Acting Mayor Sunita Dangol on Thursday unveiled the budget, which is Rs 770 million more than the amount allocated for the current FY. According to her, of the earmarked expenditure, Rs 20.18 billion will be generated from the internal revenue sources and bank balances, while the remaining Rs 4.93 billion will be managed from the fiscal grants provided by the central and provincial governments.
The KMC has estimated to collect Rs 25.13 billion in its reserve fund in the next FY. The metropolis has rendered high priority to infrastructure construction in its annual financial plan, with allocation of Rs 15.31 billion (61 percent) for this purpose.
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‘Sewage management, improvement in the school education system, promotion of good governance, capacity building of urban health promotion centers, and programs to increase employment and income by promoting the One Ward One Enterprise work process have been given high priority,’ the budget states.
Likewise, the KMC has proposed a total of Rs 2.42 billion (9.6 percent) for the social sector development, Rs 2.13 billion (8.5 percent) for good governance and interrelated sectors, Rs 4.71 billion (18.8 percent) for the office operation and administrative cost, and Rs 541.8 million (2.1 percent) for the economic development sector.
In addition, the KMC has mentioned in the budget that it will run a youth-centered self-employment program. For this purpose, the metropolis has allocated Rs 100 million.
Likewise, Rs 160 million has been allocated for the Metropolitan Nutrition Allowance Program, Rs 50 million has been allocated for the first year under the multi-year plan for the construction of collective housing and Rs 40 million has been allocated for the starting year under the multi-year plan for the construction of the Metropolitan Hospital.
Meanwhile, the KMC spent only 45 percent of the allocated budget in 11 months of the current FY. Of the earmarked amount of Rs 25.11 billion, the metropolis utilized only Rs 11.29 billion. It involved Rs 5.72 billion under recurrent expenditure and Rs 5.52 billion under the capital expenditure.
