SIDDHARTHANAGAR: Lumbini Province has recorded improved financial performance in the first 11 months of the current fiscal year, with internal revenue rising by 12 percent compared to the same period last year.

According to data presented in the Provincial Assembly by Minister for Economic Affairs and Planning Dhanendra Karki, the province collected Rs 5.14 billion in internal revenue as of June 8.

During the same period, a total of Rs 26.57 billion was deposited into the provincial consolidated fund, which includes federal grants, revenue sharing, and internal income.

The provincial government has spent Rs 17.47 billion so far, representing 44.85 percent of the total budget. Of this, Rs 10.11 billion was allocated to capital expenditure, while Rs 7.36 billion was spent on recurrent expenses.

Out of Rs 1.93 billion transferred to local levels, 56.42 percent has been utilized so far.

The government also reported progress on its flagship provincial capital infrastructure project, which has now been completed in its first phase with 100 percent physical progress and 95.58 percent financial progress. Administrative services have already begun from the new administrative building since May 4, 2026.

Minister Karki stated that the province’s economic growth rate is estimated at 2.87 percent this fiscal year, down from 4.27 percent last year. The slowdown has been attributed to weaker performance in agriculture and slower expansion in transport, communication, and trade sectors.

The provincial Gross Domestic Product (GDP) is projected to reach Rs 937 billion, contributing around 14.2 percent to the national economy.

The report further notes that improved electricity access, now at 98.6 percent of households, and internet penetration of around 80 percent have supported broader economic development in the province.

Officials said federal fiscal transfers, including equalization, conditional, special, and complementary grants, along with revenue sharing, continue to play a key role in strengthening provincial finances.