Local Governments Achieve Record Budget Submission Rate

Kathmandu. In the current fiscal year, approximately 50 local governments out of 573 could not present their budgets by the deadline of Ashad 10. However, this year the number has decreased to 28. According to the Nepal Municipal Association and the National Association of Rural Municipalities, for the first time since the establishment of local levels, about 95 percent of local governments have successfully presented their budgets on time. The Local Government Operation Act, 2074 and the Intergovernmental Fiscal Management Act, 2074 clearly mandate that all metropolitan cities, sub-metropolitan cities, municipalities, and rural municipalities must present the policy, program, and budget for the upcoming fiscal year in their respective assemblies by Ashad 10. The main objective of setting this deadline is to ensure that the budget is passed before the start of the new fiscal year, paving the way for expenditure from Shrawan 1 and allowing development work to proceed smoothly. According to the latest data released by the Nepal Municipal Association and the National Association of Rural Municipalities Nepal, out of a total of 293 municipalities in the country, 279, or 95 percent, have submitted their budgets on time, while 14 municipalities have failed to present their budgets. Similarly, out of a total of 460 rural municipalities, 446, or 97 percent, have presented their budgets on time, while 14 rural municipalities have missed the Ashad 10 deadline. Overall, more than 95 percent of local governments have been able to present their budgets on time. This is the best financial federalism implementation to date. Budget Delayed Due to Lockdowns and Hidden Decision Books Municipalities that could not present their budgets include the highest number from the Madhesh Province. Janakpurdham sub-metropolitan city, the capital of Madhesh Province, has not yet received its budget. The preparation of the budget has been affected by the mayor being out of the district, incomplete internal groundwork, and the chief administrative officer being absent from the office for a long time. Dhanusha's Videh Municipality has cited the settlement of the previous fiscal year and administrative complexities as reasons for not presenting the budget, while Kamala Municipality has stated that it will soon convene a meeting to set a new date for the municipal assembly. In Mahottari's Jaleshwor Municipality, the municipal assembly has been thrown into uncertainty after the ward chairpersons of 8 out of 12 wards jointly locked down the office due to disputes over budget allocation. Due to insufficient internal preparation, municipal assemblies have not been held in Siraha Municipality of Siraha and Rajbiraj Municipality, the headquarters of Saptari. In Bheri Municipality of Jajarkot, a dispute between representatives of the Nepali Congress and CPN-UML led to the disappearance of the executive committee meeting's decision book, and although the book was later found in the deputy mayor's office, the dispute continued, preventing the budget from being presented. Besides these, Dharan sub-metropolitan city in Koshi Province, and Garuda Municipality, Gadhimai Municipality, Katahariya Municipality, and Phatuwa Bijaypur Municipality in Rautahat district under Madhesh Province, also failed to present their budgets on time. Sarlaahi's Hariban Municipality, Siraha's Sukhipur Municipality, Melamchi Municipality in Sindhupalchok of Bagmati Province, Baglung Municipality in Gandaki Province, and Tikapur Municipality in Kailali of Sudurpashchim Province also failed to present their budgets by Ashad 10. The Municipal Association has stated that the main reasons for the delay in budgets in these municipalities are generally disagreements between representatives on the priority of plans and budgets, work style differences between the chief administrative officer and representatives, and a lack of consensus among the members of the municipal executive and the municipal assembly. Disputes Also a Major Problem in Rural Municipalities In rural municipalities, 14 rural municipalities could not present their budgets by Ashad 10 due to various technical problems, lack of preparation, and unforeseen circumstances. Among the three rural municipalities in Koshi Province, in Atharai Rural Municipality of Tehrathum and Jahada Rural Municipality of Morang, the rural assemblies have started, but the budget presentation is pending due to internal reasons, while in Chhathar Jorapati Rural Municipality of Dhankuta, the rural assembly has not yet begun. In rural municipalities of Madhesh Province, budget presentation has been affected by mutual disputes and misunderstandings between representatives in Chhipaharmai Rural Municipality and Dhobini Rural Municipality of Parsa, while Pipara Rural Municipality of Mahottari planned to present the budget on Ashad 13 along with the inauguration of a new administrative building, thus not presenting it within the stipulated time. In Raksirang Rural Municipality of Makwanpur in Bagmati Province, the budget could not be presented on time due to insufficient preparation. In Kapilvastu of Lumbini Province, Maya Devi Rural Municipality and Sudhodhan Rural Municipality, and in Rupandehi, Kothimai Rural Municipality, the budget presentation has been affected due to a lack of consensus in budget preparation, disputes among representatives, and insufficient internal preparation. In the rural municipalities of Karnali and Sudurpashchim provinces, the budget has been delayed due to unforeseen problems at the leadership level and special administrative plans. In Kalimati Rural Municipality of Salyan in Karnali Province, the chairman Dan Bahadur KC was seriously injured in a motorcycle accident on his way home after completing all budget preparations and was sent to Nepalgunj for treatment, leading the meeting chaired by the vice-chairperson to decide to postpone the rural assembly. In Mudkechula Rural Municipality of Dolpa, the budget could not be presented on time due to domestic problems as the chairperson's mother had to go out of the district for treatment due to illness. In Banni Gadhi Jaygad Rural Municipality of Achham in Sudurpashchim Province, the budget is planned to be presented on Ashad 19 along with the inauguration of the administrative building, which is in the final stages of construction. Similarly, in Joshipur Rural Municipality of Kailali, although the policy and program have been presented, the budget is being prepared to be presented today, the 12th, or tomorrow, due to some technical reasons, the rural municipality stated.