KATHMANDU, May 27: Nepal’s provincial governments have begun unveiling their policy priorities and budget frameworks for the upcoming fiscal year 2026/27, promising reforms in governance, employment, tourism, agriculture, infrastructure and digital transformation.
However, questions over implementation continue to dominate discussions across several provinces, where many previously announced flagship programs remain incomplete or unimplemented.
Lumbini: Administrative downsizing, organic farming and tourism push
The Lumbini Province government has prioritized good governance, economic prosperity and administrative reform in its upcoming fiscal policy.
Presenting the government’s policy and program at the provincial assembly on Monday, Krishna Bahadur Gharti announced that the number of ministries would be reduced from 12 to eight from mid-July 2026 as part of what the government described as its biggest administrative reform initiative aimed at reducing financial liabilities.
The province has also prioritized its “One Local Unit, One Organic Crop” policy in coordination with local governments to promote nutrition security, indigenous crops and sustainable agriculture. Specialized agricultural resource centers are planned in multiple districts, including horticulture in Kapilvastu, goat farming in Arghakhanchi, hill fruits in Gulmi, vegetable seeds in Pyuthan and potato seed production in Rukum East.
The government has pledged to continue targeted agricultural programs for marginalized groups, including freed Kamaiyas, freed Kamlari communities, landless Dalits and low-income households through riverbank farming, collective farming and livestock programs.
Lumbini also plans to promote entrepreneurship and digital transformation through its “Entrepreneurial Lumbini” and “Digital Lumbini” campaigns. Returnee migrant youths will be encouraged toward startups and agriculture-based enterprises through technology and financial support programs.
Tourism has been identified as another major priority. The province plans to develop a “Silver Triangle” tourism circuit linking Lumbini, Swargadwari and Bardiya National Park. Religious tourism corridors connecting Lumbini to Muktinath and Koilabas to Swargadwari are also proposed.
The government further pledged to prioritize unfinished infrastructure projects under an “Incomplete Projects: Complete Them” approach while expanding drinking water, suspension bridge and settlement development programs.
Madhesh: Policy delayed amid coalition wrangling
The Madhesh Province government has yet to unveil its policy and program due to delays in cabinet expansion under Chief Minister Krishna Prasad Yadav.
The coalition government involving the Nepali Congress (NC), UML and CPN (Unified Socialist) remains divided over ministerial allocations after ministers from the Janata Samajbadi Party Nepal were dismissed last week.
Eight local levels unveil policy and programs in Khotang
Vice-chairperson of the Provincial Policy and Planning Commission, Raj Kumar Singh, said preparations for the policy document are in the final stage and are expected to be endorsed by the cabinet on Tuesday.
According to officials, the province will prioritize education, health and agriculture, with emphasis on poverty reduction, employment generation and long-term development planning instead of fragmented projects.
Koshi: Popular promises, recurring implementation failures
The Koshi Province government has once again unveiled ambitious and popular programs for fiscal year 2026/27, though many initiatives announced in previous years remain unimplemented.
The province has prioritized governance reform, tourism, climate adaptation, green development, digital governance and migration control while reiterating its long-term vision of building a “clean, happy and prosperous province.”
The new policies include administrative restructuring, digitization of government services, anti-corruption strategies and expansion of electronic governance systems. A “Talent Hunt” initiative has also been proposed to attract young professionals into provincial civil service.
Tourism remains a key pillar, with the government announcing “Koshi Province Visit Year” from 2026 to 2028. New concepts such as wellness hubs, meditation villages and spiritual tourism circuits have been introduced alongside the promotion of religious sites, including Barahachhetra, Haleshi Mahadev Temple and Pathibhara Devi Temple.
Agriculture policies include strengthening irrigation systems and promoting solar irrigation and climate-resilient farming, while infrastructure plans focus on roads, railways, airports and smart infrastructure development.
However, opposition lawmakers have criticized the government for repeatedly recycling old programs without implementation. Former minister Ganesh Upreti accused the government of merely “cultivating false promises” through repetitive policy announcements.
Bagmati: Jobs through innovation and digital transformation
The Bagmati Province government has presented the principles and priorities of its budget for the upcoming fiscal year, emphasizing entrepreneurship, innovation and digital governance.
Presenting the proposal in the provincial assembly, Economic Affairs and Planning Minister Prabhat Tamang said the government aims to generate employment within the province by encouraging startups, entrepreneurship and technological innovation.
The government plans to prioritize infrastructure, tourism, agriculture and employment generation while expanding digital revenue systems, technology-friendly tax administration and online monitoring systems for development projects.
Agriculture modernization, mechanization, and subsidized loans for agricultural entrepreneurs have also been proposed.
Lawmakers from both ruling and opposition parties welcomed the focus on digital transformation and youth employment, though concerns were raised about youth migration and the need for stronger implementation.
Gandaki: Repeated promises, stalled execution
The Gandaki Province government is facing criticism for repeatedly announcing ambitious projects that fail to materialize.
Programs such as the “Invest Gandaki” investment summit, international botanical tourism parks in Pokhara and tourism campaigns around Fewa Lake have remained largely unimplemented despite repeated inclusion in annual policy documents.
Plans to upgrade trekking routes in Annapurna, Manaslu and Dhaulagiri regions, establish industrial zones and construct sports infrastructure in Mustang have similarly failed to move forward.
Vice-chairperson of the Gandaki Policy and Planning Commission, Krishna Chandra Devkota, defended the repetition of projects, arguing that many development projects are multi-year undertakings and depend on federal coordination.
Economist Lekhnath Bhattarai, however, said provinces should design programs based on realistic capacity and implementation potential rather than repeatedly announcing projects for political appeal.
Karnali: Short-lived populist programs
The Karnali Province government has been criticized for launching highly publicized welfare programs that later lost continuity.
One such initiative was the “Bank Account for Daughters: Lifetime Security” scheme launched in fiscal year 2019/20 to support girl children and reduce gender discrimination. Although thousands of girls were enrolled and financial deposits were initially made, the government later discontinued funding, leaving many beneficiaries disappointed.
Similarly, several policies announced in recent years—including promotion of local stone use in public infrastructure, wine production in Dolpa and specialized livestock centers—remain unimplemented.
The government has also repeatedly promised a dedicated policy for the endangered nomadic Raute community community but has yet to approve it despite nearly a decade of provincial governance.
A major employment initiative titled “Karnali Prosperity Campaign", which aimed to create 10,000 jobs annually through innovation and entrepreneurship, also failed to deliver results.
Academics and policy experts say the province often introduces populist programs without properly assessing available resources and institutional capacity.
Sudurpaschim: Attractive plans overshadowed by weak execution
The Sudurpashchim Province government is also facing criticism for poor implementation despite repeatedly announcing ambitious development agendas.
The province has highlighted tourism, agriculture, industry, employment generation and poverty reduction in successive policy documents. Yet civil society leaders say the province has failed to produce visible improvements in living standards.
Programs related to agro-processing, dairy industries, endangered livestock conservation and youth employment have largely remained confined to policy documents.
Officials admit that the province has struggled to meet many targets outlined in its first five-year plan, including poverty reduction and job creation. Provincial Planning Commission member Nripa Sunar acknowledged that weak planning, fragmented projects, limited revenue capacity and poor capital expenditure performance have hindered implementation.
Even previously announced plans to upgrade provincial hospitals in Belauri, Gokuleshwar and Kolti have yet to materialize, though officials say they will be continued in the upcoming fiscal year.
Across Nepal’s provinces, the upcoming fiscal year’s policy agendas reflect ambitious visions centered on prosperity, governance reform, tourism, digital transformation and employment generation. Yet recurring concerns over weak implementation, repeated promises and limited institutional capacity continue to cast doubt on whether the provinces can translate policy into tangible results.
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