KATHMANDU, July 5: Roads, bridges, irrigation projects, schools and hospitals remain at the heart of the Sudurpashchim Province government's budget for the fiscal year 2026/27. Familiar programs such as "One Local Level, Two Products," "One House, One Tap," the Chief Minister Health Sector Reform Program and education scholarships continue from previous years.
This time, however, the provincial government is trying to broaden its development agenda. Instead of treating agriculture, education, health, infrastructure and enterprise as separate sectors, the Rs 37.7 billion budget links them through employment, social transformation, digital governance, youth entrepreneurship and local economic development.
One of the budget's biggest policy shifts is its declaration of the coming fiscal year as the base year for natural farming. The government plans to prepare a provincial roadmap to develop Sudurpashchim as a hub for environmentally friendly agriculture.
Policies promoting organic farming and pesticide free food production are intended not only to boost agriculture but also to address climate change, public health and market demand.
Another new initiative is the "Work Hard at Home" campaign, aimed at returning migrant workers and agriculture graduates. Backed by Rs 20.5 million, the program seeks to encourage youth entrepreneurship in farming and turn unemployment into productive economic activity.
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The budget also places strong emphasis on marketing local products. It proposes geographical indication (GI) registration, branding, improved packaging and the "Sudur Koseli" initiative to help local products reach national and international markets. A Sudur Koseli outlet operating at Dhangadhi Airport will promote products from all nine districts.
According to provincial officials, the goal is to move farmers beyond production and integrate them into the entire agricultural value chain.
The government has also introduced targeted programs for disadvantaged communities. Under the Chief Minister Micro Enterprise Program, nutrition and income generation projects will be launched in selected local units of Achham, Bajura, Baitadi and Doti. Another Rs 40 million has been allocated for housing, livelihood support and income generating activities for freed bonded laborers, including former Kamaiyas, Kamlaris, Haliyas and landless families.
Livestock development also receives attention. The budget allocates Rs 65 million for a large-scale sheep farming program in Bajhang, Bajura and Darchula, including wool processing and carpet manufacturing to strengthen local value chains. Another Rs 18 million has been earmarked to support farmers who still rely on oxen for cultivation.
Digital governance is another major priority. The province plans to digitize all vehicle and driving licence records while moving registration, renewal and revenue payments fully online. Officials say the reforms will reduce costs, improve public services and increase transparency.
The social sector also features prominently. The government has continued its "Let Me Grow, Let Me Study, Not Marry Early" campaign against child marriage, allocating Rs 10 million for awareness and prevention.
Education programs include Rs 45 million for the Chief Minister Education Scholarship to support financially disadvantaged students pursuing higher education, including MBBS and MDGP degrees. Another Rs 45 million has been allocated for work study programs in community campuses and the development of one model campus in each district.
Health spending extends beyond treatment. Through the "My Health, My Responsibility" campaign, the province aims to strengthen community-based prevention of non-communicable diseases and mental health problems. Special programs will also focus on screening and treating sickle cell anaemia, thalassemia and haemophilia, conditions that affect parts of the Tharu community.
The budget also promotes climate resilient villages, supports high value crops in areas affected by human wildlife conflict, encourages community cattle shelters to become production centres, and expands organic fertiliser and biogas production.
Alongside these initiatives, the government has prioritized public private partnerships, digital taxation, investment promotion, startup support and results-based budgeting. Officials say effective implementation could create a new development model for the province.
Much will depend on execution. Many similar programs announced in previous years produced limited results. Observers say the real test will be implementation, coordination among governments, collaboration with the private sector and effective monitoring.
Political disagreement has also emerged over the budget preparation process. Leaders from both the opposition and parties within the ruling coalition have expressed dissatisfaction with project selection.
Chief Minister Kamal Bahadur Shah acknowledged that the budget contains some technical shortcomings but said discussions are underway to resolve them before it is tabled in the Provincial Assembly. He expressed confidence that the budget would ultimately win consensus approval.
