BIRATNAGAR: Biratnagar Metropolitan City has presented an estimated budget of Rs 3.56 billion for the upcoming fiscal year 2026/27, despite facing criticism over its poor spending capacity and budget implementation in the current fiscal year.

Deputy Mayor Shilpa Nirala Karki presented the total annual budget of Rs 3,564,700,000 during a municipal assembly meeting on Wednesday, a move that coincided with the publication of data showing the metropolis failed to spend even half of its allocated budget in the first 11 months of the current fiscal year.

Out of the total projected revenue for the upcoming fiscal year, the metropolitan city expects to receive Rs 334.3 million in fiscal equalization grants and Rs 738.5 million in conditional grants (both current and capital) from the federal government.

Similarly, it aims to secure Rs 142.67 million from the provincial government across equalization, conditional, and capital grants. Under revenue sharing—which includes vehicle, housing, land registration, and value-added tax—the city estimates an income of Rs 925.61 million. Additionally, Biratnagar has set an ambitious internal revenue collection target of Rs 1.27 billion.

In terms of sectoral allocations, physical infrastructure development continues to receive top priority with an allocation of Rs 1.60 billion. The city has earmarked Rs 762.87 million for office operations and administrative expenses, Rs 265.05 million for social development, Rs 32.63 million for economic development, Rs 29.31 million for good governance and institutional strengthening, and Rs 25.96 million for forest, environment, and disaster management.

During her budget speech, Deputy Mayor Karki acknowledged the sluggish budget implementation of the current fiscal year 2025/26. Against an initial income projection of Rs 3.68 billion for the current fiscal year, the metropolis managed to collect only Rs 2.26 billion by mid-June.

The expenditure side painted an even grimmer picture, with the city spending just 44.76 percent (Rs 1.64 billion) of its total budget by mid-June. Infrastructure spending was particularly hard hit, utilizing a mere Rs 415.56 million out of an allocated Rs 1.61 billion.

On a positive note, the newly introduced budget outlines a targeted welfare policy offering a 25 percent discount on business registration and renewal for enterprises registered under women’s names, aiming to boost self-employment and social inclusion.