The preparation of the Nepal Budget 2026/27 (Fiscal Year 2083/84) has officially started. The National Planning Commission (NPC) has asked provincial governments and local governments to submit their project proposals for federal matching grants and special grants.
According to NPC Nepal, all provinces and local bodies must submit their proposals by mid-January. The NPC has clearly said that new projects should not overlap with ongoing government projects or projects funded by other sources. This helps reduce waste and improves government capital expenditure.
The NPC has also made it mandatory to follow the Revised Matching Grant Procedure 2025 and the Revised Special Grant Procedure 2025. Every proposal must include feasibility study reports, project designs, technical drawings, specifications, and detailed cost estimates. These documents help ensure proper planning and transparency.
In some cases, environmental assessment reports are also required. The NPC says this is important for sustainable development and proper use of public funds. Strong and disciplined budget planning improves confidence in Nepal’s economic policy, which is closely followed by NEPSE investors.
Institutional approval is also compulsory. Local government projects must be approved by the municipal executive or rural municipal executive. Provincial government proposals need recommendations from the Provincial Planning Commission and final approval from the provincial cabinet.
The NPC believes that early and well-prepared proposals will get priority in the national budget. This system is expected to improve coordination between federal, provincial, and local governments and increase the success of development spending.
For people tracking NEPSE news, Nepal budget updates, and Nepal Stock Exchange trends, this process is very important. A disciplined budget can positively affect banking sector stocks, hydropower shares, finance companies, insurance stocks, infrastructure-related shares, and overall NEPSE index performance.
The NPC is confident that this proposal-based budget process will strengthen fiscal discipline, reduce repeated projects, and focus spending on priority development projects. This is seen as a positive long-term signal for the Nepal economy and the Nepal stock market.
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