5% budget allocated for health sector

Kathmandu, May 31: The government has allocated Rs 101.95 billion for the health sector for the fiscal year 2026/027. Finance Minister Dr. Swarnim Wagle announced that the budget has been allocated to provide quality health services to all citizens.

The budget amount for the health sector allocated by the government is only 5 per cent of the Rs 21.24 billion. The World Health Organisation (WHO) has suggested that every country should allocate at least 10 per cent of its budget for the health sector.

While no government in Nepal has been able to allocate a budget to the health sector according to international standards required by the WHO, the highest budget allocation for the health sector in 2020/21 was 7.5 per cent during the COVID-19 pandemic.

However, many other developing countries allocate around 30 per cent of their budget, at least six times more budget than the Nepal government earmarks.

For the coming FY, the government has increased the health budget slightly compared to the previous year. Meanwhile, Rs. 15 billion has been allocated for the Health Insurance Programme. 

The Health Insurance Programme, operated in private and government hospitals, was forced to withdraw due to the financial crisis. Rs. 13.15 billion has been allocated for the health social security programme.

Finance Minister Dr. Wagle announced that the government will establish a burn treatment unit in the federal hospital.

The budget statement also ensures that the capacity of Bir Hospital and Kirtipur Hospital will be increased for burn treatment.

The budget also announces that the children with cancer will get free treatment in the government hospitals. Likewise, air ambulance services will be operated in remote areas in Karnali Province, and the night duty allowance of nursing personnel will be doubled.

According to the budget statement, the allowance of women volunteers has been increased by 50 per cent. Similarly, the construction of 336 basic hospitals that have been started will be completed within 3 years. 

For this, Rs 5.9 billion has been allocated for the construction and operation of basic hospitals, the budget statement states.

The budget also mentions that telemedicine services will be expanded in Karnali and the Sudur Paschim provinces. The government has announced that a kidney transplant hospital and trauma centre will be established and operated in Madhesh Province.

For the fiscal year 2025/026, the government allocated Rs. 95.81 billion (4.88 per cent) of the total budget of Rs. 1964.11 billion to the health sector.

Rs. 218.3 billion set aside for education 

The government has allocated a budget of Rs. 218.3 billion for the education sector, which is less than the budget received by the Ministry of Infrastructure Development.

Rs. 268 million has been allocated for physical and urban development infrastructure.

The education sector's budget for the fiscal year 2026/027 is slightly higher than the previous FY budget of 211.16 billion.

The government has emphasised the reform and enhancement of community schools, announcing that the government will implement the concept of operating residential schools, which has been in the news for a long time, from next year. 

According to the budget statement, the first residential school will be started from the Chepang settlement in Chitwan district.

“We will operate residential schools to ensure access to basic education for communities lagging in the human development index. We will start this programme from the Chepang community in Chitwan district,” Minister Dr. Wagle said.

Similarly, the government has allocated Rs. 1 billion for mapping the infrastructure needs of community schools across the country and Rs 8.6 billion for targeted student scholarships from school level to higher education. 

The School Management Committee will be made a means of ensuring quality education. Dr. Wagle also stated that studies related to music, art, and literature will be promoted throughout the country. The programme will also be operated in four categories of medical education, including MBBS at Shaheed Dashrath Chand University of Health Sciences in Geta, Sudurpaschim Province, from the academic session 2026/027. 

Stating that the Guthi Research Institute and Ethno Musicology Centre will be established in the premises of Tripureshwor Mahadev Mandir, registered in the Rajguthi register, the budget mentioned that policy arrangements and encouragement will be made for universities with high international standards to operate campuses in Nepal.