35 local govts fail to announce annual budget even in 4th month of fiscal year

Budget deficit

Kathmandu, November 10

Coming Sunday is the last day of Kartik, the fourth month of the current fiscal year. Yet, 35 local governments across the country are yet to announce their budget plan for this year.

The Intergovernmental Fiscal Arrangement Act stipulates the date of Asar 1 (June 15) for provincial budget statements and Asar 10 (June 24) for local ones, 20 days before the commencement of the new year.

Since the local units’ delay affected the functioning of the federal government also, the Ministry of Federal Affairs and General Administration is preparing to seek clarifications from them, informs its joint-secretary Basanta Adhikari.

Those failing to announce the budget yet include 19 rural municipalities and 16 municipalities.

Earlier last week, the ministry had consulted associations of leaders of municipalities and rural municipalities across the country about the delay and ways to respond to it.

Following the meeting, the ministry has already warned that the federal government could bar the local units failing to announce the budget from accessing its grant support.

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