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Kathmandu Unveils Rs 25.76 Billion Budget for FY 2025/26, Focuses on Infrastructure and Social Development

CEO Tab by CEO Tab
July 14, 2025
in Prime News
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KMC recovers Rs 70 million arrears from big taxpayers
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Kathmandu Metropolitan City (KMC) has tabled a budget of Rs 25.76 billion for the upcoming fiscal year 2025/26. The announcement was made by Deputy Mayor Sunita Dangol during the 17th municipal assembly meeting held on Sunday.

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The new budget marks a modest increase from last year’s Rs 24.90 billion. According to the breakdown, KMC anticipates generating Rs 20.12 billion through internal revenue and bank reserves. Additionally, grants from the federal and provincial governments—including conditional, equalization, and revenue-sharing funds—are expected to contribute Rs 4.98 billion.

In terms of allocation, the lion’s share—51 percent or Rs 12.80 billion—has been earmarked for infrastructure development, reaffirming KMC’s continued emphasis on urban improvement. Social development will receive 20 percent or Rs 5.02 billion, followed by governance and related functions at 12 percent and administrative operations at 14 percent. Notably, only 3 percent—around Rs 753 million—has been set aside for economic development.

Key focus areas in the upcoming fiscal year include:

  • Waste management
  • Educational reform initiatives
  • Promotion of urban health
  • Employment generation through the “One Ward, One Enterprise” program
  • Noise pollution control
  • Better public transport management
  • Preservation of heritage sites, including temples, ponds, and traditional water systems.

Deputy Mayor Dangol acknowledged the delay in presenting the budget, citing internal disagreements as the cause. She offered her apologies to the public and stakeholders, expressing hope that coordination with federal and provincial bodies would ensure that KMC meets the growing expectations of its residents.

Despite the setbacks, Dangol commended the efforts of elected representatives and city staff, underscoring the importance of collaborative governance in driving Kathmandu’s development forward.

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