Lumbini receives due priority in federal budget

By Our Correspondent, Butwal, May 31: The federal government has prioritised major projects in road infrastructure, irrigation, tourism, industry and energy in Lumbini Province in the budget for the fiscal year 2026/27. 

In particular, locals of the province have expressed optimism following the announcement that the long-awaited Siddhababa Tunnel project will be completed within the current fiscal year.

Presenting the budget, Finance Minister Dr. Swarnim Wagle announced that the Siddhababa Tunnel, currently under construction along the Siddhartha Highway, will come into operation within this fiscal year. 

The tunnel is expected to make travel along the Butwal-Palpa-Pokhara route safer and more convenient, particularly in the Siddhababa section, which has long posed a high risk of landslides and caused hardship for travellers.

The budget also stated that the process of developing the Butwal-Pokhara section of the Siddhartha Highway as an expressway will move forward. 

Similarly, the government has pledged to complete the Butwal-Narayangadh road project within the current fiscal year, accelerate construction of the Butwal-Gorusinghe road and upgrade the Dhankhola-Lamahi road in Dang. 

A feasibility study for the upgrading of the Chandrauta-Dhankhola road will also be carried out.

In the tourism sector, the government has allocated Rs. 830 million for the integrated development of the Greater Lumbini Area. 

An integrated tourism development programme covering Lumbini, the birthplace of Lord Buddha, along with Tilaurakot, Ramgram and Devdaha, will be implemented. The budget also states that necessary efforts will be made to enlist Tilaurakot in Kapilvastu on the UNESCO World Heritage List.

The government’s announcement to collaborate with the private sector for the effective operation and management of Gautam Buddha International Airport has also been regarded as significant for Lumbini Province. 

With passenger numbers and flight operations falling short of expectations, the government aims to make airport operations more efficient and commercially viable. Plans to upgrade Tarigaun Airport in Dang have also been incorporated into the budget.

To promote industrial development, the government has announced that responsibility for the construction and operation of the Motipur Industrial Area and Mayurdhap Industrial Area in Rupandehi will be handed over to the private sector.

The budget has also accorded high priority to irrigation to boost agricultural production. A total of Rs. 2.55 billion has been allocated to expand irrigation facilities to an additional 5,000 hectares under the Sikta Irrigation Project in Banke. 

At the same time, Rs. 1.21 billion has been earmarked to extend irrigation facilities to an additional 2,380 hectares through the Greater Dang Valley Irrigation Project and the 

Praganna-Badhkapath Irrigation Project in Dang.

Likewise, the Rajapur Irrigation Project in Bardiya will be restored, while further studies will be conducted into the possibility of expanding irrigation facilities in Kapilvastu through the Naumure Hydropower Project. 

Restoration and maintenance work on the Banganga Irrigation Project in Kapilvastu will also move forward.

To promote tourism, the government plans to develop Swargadwari and the Ruru area into more attractive destinations and has proposed the construction of the Swargadwari-Muktinath high-tourism route. 

The government has also targeted the early completion and operation of the under-construction Integrated Check Post (ICP) in Bhairahawa.

In the energy sector, construction of the New Butwal Transmission Line will be accelerated, while work on the cross-border Butwal-Gorakhpur transmission line will also gather pace. 

Under sports infrastructure, the budget includes plans to upgrade the Butwal Stadium with floodlights.

Responding to the budget, Lumbini Province Finance Minister Dhanendra Karki described the federal budget as broadly positive. 

He said that efforts had been made to provide tax concessions in some sectors and expand sources of revenue, while adding that the effectiveness of the budget would depend on its implementation.

He added that several important projects in Lumbini Province had secured a place in the federal budget, while other excluded projects would be addressed through the upcoming provincial budget.