Budget Preparation Process for Fiscal Year 2026/27 Officially Begins

The process of preparing Nepal’s budget for the upcoming fiscal year 2026/27 (2083/84) has formally begun. The National Planning Commission (NPC) has initiated the process by calling on provincial and local governments to submit project and program proposals to be implemented under federal matching and special grant schemes.

According to the NPC, provinces and local governments seeking federal matching and special grants must submit their proposals by the end of mid-January. The commission has instructed subnational governments to ensure that proposed projects do not overlap with programs being implemented through other funding sources or with projects that are already underway.

The NPC has emphasized that proposals must strictly comply with the provisions of the revised Matching Grant Procedure 2025 and the revised Special Grant Procedure 2025. These guidelines require submitting detailed documentation, including feasibility studies, drawings, designs, technical specifications, and comprehensive cost estimates, to justify grant eligibility.

In addition to technical and financial details, proposals must also include environmental assessment reports, where applicable. The commission noted that such documentation is essential to ensure project sustainability, technical readiness, and responsible use of public funds.

Institutional approval has also been made mandatory under the procedures. For local governments, proposals must be endorsed by the respective municipal or rural municipal executive. In the case of provincial governments, proposals require a recommendation from the Provincial Planning Commission followed by approval from the provincial cabinet.

The NPC stated that early and well-prepared submissions will help prioritize high-impact development projects in the upcoming budget. Officials believe that this structured approach will improve coordination among federal, provincial, and local governments while enhancing the effectiveness of capital expenditure.

The commission has expressed confidence that the proposal-based budget preparation process will strengthen fiscal discipline, reduce duplication of projects, and ensure that limited public resources are directed toward well-planned and priority development initiatives.