Sudurpashchim Province Unveils Budget Allocation for 88 Local Levels for Fiscal Year 2083/84

Dhangadhi. The Sudurpashchim provincial government has unveiled the framework for the equalization grants to be provided to 88 local levels within the province for the upcoming fiscal year 2083/84. The Ministry of Economic Affairs has allocated a total of 918 million rupees, marking an increase of approximately 4 percent compared to the current fiscal year.

Of the total allocated amount, 723.115 million rupees is formula-based. Additionally, 158.165 million rupees has been set aside for the minimum requirements of local levels, and 36.72 million rupees has been earmarked as performance-based incentives.

Under this allocation, Dhangadhi Sub-Metropolitan City, the provincial capital, will receive the highest amount at 27.007 million rupees. Conversely, Saipal Rural Municipality in Bajhang, known for its remote and vast geography, is allocated only 4.477 million rupees.

Arjun Khadka, Deputy Secretary and Information Officer at the Ministry of Economic Affairs, stated that while these grants are 'unconditional,' they come with technical stipulations. 'Local levels cannot use these funds for staff salaries, allowances, or administrative expenses; they must be utilized solely for capital-intensive projects such as development, infrastructure, education, and health,' he explained.

The Ministry claims the budget was distributed based on population, area, human development index, and revenue collection capacity. However, local representatives argue that these criteria disadvantage remote areas. Manbir Bohara, Chairman of Saipal Rural Municipality, criticized the distribution system as unjust, noting that relying solely on population ignores the challenges of vast, remote geographies. 'Saipal covers nearly half of Bajhang's land area. With borders touching Tibet, Darchula, Humla, and Bajura, and a terrain where traveling between wards takes days, 4.4 million rupees is insufficient for development,' he remarked.

Bohara highlighted that transportation costs in Himalayan regions are ten times higher than in accessible areas, adding that the current funding model undermines the spirit of federalism. Furthermore, the Ministry's 17 performance indicators favor accessible municipalities that have the resources to meet targets, while remote areas like Saipal struggle with staff shortages and poor performance metrics. Data for the current fiscal year 2082/83 shows that local levels have only spent 36 to 37 percent of their grants so far, with much of the spending delayed until the end of the fiscal year.