Overview of the Situation at Dhanusa District

The bank accounts for all 18 local municipalities in Dhanusha district have not yet been activated for the current financial year. This has led to a complete halt of all financial transactions. The affected local bodies include one Sub-Metropolitan City, 11 Municipalities, and six Village Municipalities. This problem is severely impacting two key areas: employees are not receiving their salaries and benefits, and all local development and construction work has been suspended.

Legal Reasons for the Account Freeze

According to the Office of the Controller of Fund and Account, there are specific legal procedures that the local municipalities must complete before their accounts can be activated. The failure to complete these steps is the direct cause of the problem. The mandatory requirements include:

• Conducting the municipal or village assembly.

• Passing the annual financial bill and appropriation bill.

• Getting the budget for the current financial year approved.

• Submitting the expenditure details of the previous financial year.

It has been reported that the majority of the 18 municipalities have not finished these processes. In fact, 10 of them have not even submitted their budget for the current fiscal year 2082/83 to the relevant authorities, including the Ministry of Federal Affairs and General Administration.

Current Status and Impact

The current financial year had already begun two months ago, but the accounts remain closed because the necessary legal procedures are incomplete. This delay is creating significant obstacles in implementing local development plans and providing essential services to the public.

I hope this summary helps clarify the administrative issue in Dhanusha. Would you be interested in learning more about the specific legal provisions governing local-level financial management in Nepal?