Far-Western Province Faces Budget Vacuum as Government Becomes Minority

Dhangadhi. The Sudurpaschim Province government has reached a state of budget vacuum. The government led by Chief Minister Kamal Bahadur Shah has no possibility of passing the budget for the upcoming fiscal year 2083-84 as it has become a minority government before the budget could be passed. The government is now preparing to bring an advance budget through an ordinance to manage the essential expenses of the province.

Thursday is the last day of the current fiscal year 2082-83. According to the constitution, the budget for the new fiscal year must be passed by the Provincial Assembly by this day. However, with the change in the power equation and the government falling into a minority, the possibility of passing the budget has been averted. The government is preparing to end the current session of the Provincial Assembly and issue an ordinance on July 1st. Since a full budget cannot be brought through an ordinance, preparations are underway to bring an advance budget only for staff salaries and allowances, administrative expenses, and the operation of essential services. A full budget will be brought after a new government is formed.

There is also a low possibility of a new government being formed today as the government does not have a majority in the Provincial Assembly. Therefore, a situation has arisen where the provincial government will have to operate its administration without a regular budget when the new fiscal year begins.

The main opposition, the CPN (UML), has also acknowledged that the government is in a situation where it cannot pass the budget and stated that bringing an ordinance for expenditure is natural. Khagaraj Bhatta, leader of the CPN (UML) parliamentary party, said that the government must make the necessary legal arrangements as the daily administration and essential services of the province should not be halted.

This is the second time the Sudurpaschim Province has faced a budget vacuum. Previously, at the beginning of the fiscal year 2081-82, the government led by then-Chief Minister Dirgha Bahadur Sodari also fell into a minority before the budget could be passed. After the Communist Party of Nepal (UML) withdrew from the government, the province faced a budget vacuum for about a month as the budget could not be passed by the Provincial Assembly.

At that time, due to the non-passage of the budget, vehicle registration and renewal, land registration, revenue collection, and other government services were affected. Opposition parties accused the government and ruling coalition parties of pushing the province into a budget vacuum by not discussing the budget in a timely manner.

There is one significant difference this year compared to last year, according to the government's claim. The Seasonal Revenue Collection Act, 2081, has already been passed by the Provincial Assembly, so employees say that there is a legal basis for collecting revenue such as agricultural income tax, vehicle tax, land registration fees, and tourism fees.

Because of this, it is expected that the situation of a complete halt in revenue collection like last year will not occur. However, it is certain that the implementation of new plans, expenditure of development budgets, and operation of new programs will be affected until a full budget is introduced.

The Sudurpaschim Province did not face a budget vacuum during the five-year term of the first Provincial Assembly formed in 2074. However, during the term of the second Provincial Assembly formed after 2079, the provincial government has reached a state of budget vacuum twice. In both instances, the regular budget process was disrupted after the government fell into a minority before the budget could be passed.