The 17th session of the Municipal Assembly held on Thursday decided to cut the budget, citing the uncomfortable situation created by the Genji Movement, the slowdown in real estate transactions, and the failure to meet tax collection targets.
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Biratnagar Metropolitan City is facing serious financial pressure in the middle of the current fiscal year. With both revenue collection and expenditure extremely weak, the city has decided to cut 20 percent of its budget for the current fiscal year 2082/83.
The 17th session of the Municipal Council held on Thursday decided to cut the budget citing the uncomfortable situation created by the Genji movement, the slowdown in real estate transactions and the failure to meet the tax collection target.
Although the metropolis estimated an income and expenditure of Rs 4.4 billion for the current fiscal year, only Rs 1.15 billion has been collected from Shrawan to Poush 15. This is only 28.93 percent of the total estimate. On the other hand, only Rs 717 million has been spent on expenditure, which is limited to 17.90 percent.
In the expenditure structure, capital expenditure is seen as even weaker. As of Poush 15, only Rs 144 million has been spent on capital expenditure, while Rs 548 million has been spent on administrative and current expenditure. This indicates that the emphasis is on administrative expenditure rather than implementing development plans.
Internal revenue collection has reached an even more worrying level. Out of the estimated internal revenue of Rs 1.4 billion, only Rs 198.5 million has been collected as of Poush 15. The overall financial situation of the metropolis has come under pressure after revenue sharing and grants from the federal and provincial governments did not meet the targets.
Deputy Mayor Shilpa Nirala Karki said that the revised budget will be implemented by adjusting municipal and thematic plans and programs other than those at the ward level. The financial report presented in the municipal assembly has indicated that development expenditure cuts and program contraction will be mandatory in the current year.
Weak revenue collection, low capital expenditure, and the decision to cut the budget are likely to have a direct impact on the development, construction, and service delivery of Biratnagar Metropolitan City this year.
