Kathmandu, May 29 -- The government has allocated Rs12.31 billion for the forestry, environment and climate change sector in the budget for fiscal year 2026-27.

Presenting the budget at the joint session of the Parliament on Friday, Finance Minister Swarnim Wagle said the government will issue green energy bonds and diaspora bonds while adopting a policy to maximise the use of available climate funds.

Around Rs1 billion has been allocated for water source conservation, pond construction, landslide control and embankment works to sustain the water cycle in the Chure and Tarai-Madhesh regions.

The government also plans to begin purchasing medicinal herbs and non-timber forest products by fixing a support price, while establishing a herba...