Nepal’s deputy prime minister and finance minister Bishnu Prasad Paudel has unveiled the $14.41 billion budget for the fiscal year 2025-2026. Of this, 20.8% of the budget has been allocated for capital expenditure. Finance minister Paudel allocated $1115.35 million for the Ministry of Physical Infrastructure and Transport for infrastructure development, construction and maintenance.
The finance minister has also allocated budget for national highways to be upgraded and widened according to necessity. The budget also includes provision for regular road and highway maintenance as well as sustainable mobility. New projects will not progress unless economic, technical and environmental viability studies have been carried out. The finance minister has allocated $26.12 million for the completion of Postal Highway within two years hoping economic development of Terai-Madhesh region.
The Budget has also been allocated to upgrade a stretch of the Prithvi Highway between Naubise and Mungling. This will be widened and improved. Construction work for the widening of the Aanokhaireni-Pokhara section of the Prithvi Highway will be carried out costing $62.51 million.
Feasibility studies will also be conducted for the alternative operation of Kathmandu Valley Public Transport with Metrorail and Monorail. The budget includes formulating and implementing Road Safety Policies and the National Road Transport Safety Standard.
Completion is planned for three tunnel projects, the Nagdhunga Tunnel, Siddababa Tunnel and Tunnel in Kathmandu-Terai Fast Track Project.
Meanwhile 850km of roads will be surfaced with asphalt and 171 bridges will be completed during the financial year.
