This second quarterly budget review, prepared by Hriti Foundation, analyzes the Karnali Province Government’s budget implementation during the second quarter of Fiscal Year 2081/82 (Kartik–Poush). The report presents a detailed assessment of the province’s fiscal performance, focusing on the structure of the budget, sectoral and ministerial allocations, revenue sources, actual expenditure trends, progress on policy commitments, implementation bottlenecks, and practical recommendations for improvement.