51 local governments yet to announce budget plan for this year

Budget deficit

Kathmandu, August 2

It has been 18 days since the new fiscal year began, but 51 of the 753 local governments in the country are yet to announce the budget plan for the current fiscal 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, over 20 days before the commencement of the new year.

Of 59 units, 36 have failed to introduce the budget plan whereas 15 others failed to get the plans endorsed through municipal assemblies, informs Basanta Adhikari, the spokesperson for the Ministry of Federal Affairs and Local Development.

The province-wise distribution of the units failed in introducing the budget plan is given below:

  • Province 1: 6
  • Province 2: 32
  • Bagmati: 3
  • Gandaki: 0
  • Lumbini: 3
  • Karnali: 4
  • Sudurpaschim: 3

Although the delay also affects the budgetary system at the federal level, the federal government cannot take action against such units as they are also independent governments, according to officials.

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