The main reason most municipalities have been unable to bring a budget is either the absence of a Chief Administrative Officer or disputes with the Chief Administrative Officer; in others, the disputes are among the people's representatives themselves.
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Out of the 753 local levels across the country, eight have yet to present the budget for the current fiscal year 2083/84. Although five other municipalities have brought their budgets, they have not yet entered them into the Local Level Consolidated Fund Management System (SUTRA) software.
According to the Federal Affairs and General Administration Division under the Ministry of Land Management, Cooperatives and Poverty Alleviation, the municipalities that have not submitted their budgets or have not entered them into the SUTRA software are currently in a ‘budget holiday’ situation. This means they are not allowed to collect taxes or make expenditures.
The main problems in most local levels are the lack of chief administrative officers and disputes among elected representatives.According to the Local Government Operation Act and the Intergovernmental Fiscal Arrangement Act, local levels must present the budget for the upcoming fiscal year to the assembly by the 10th of Asar. The Local Government Operation Act also stipulates that the budget must be passed by the end of Asar. However, even after the legal deadline has passed, eight municipalities have not brought their budgets. These local levels have been unable to bring their budgets due to issues such as disputes among elected representatives and a lack of chief administrative officers.
According to the ministry, out of the 13 municipalities that have not brought their budgets or have not entered them into the SUTRA software, 10 are in Madhesh Province. Two are in Lumbini and one is in Koshi. In Madhesh Province, the municipalities facing budget issues are Sukhipur Municipality and Aurahi Rural Municipality in Siraha, Kamala Municipality in Dhanusha, Garuda, Katahariya, Fatuwa Bijaypur, and Maulapur Municipalities and Yamunamai Rural Municipality in Rautahat, and Chhipaharmai and Pakaha Mainpur Rural Municipalities in Parsa.
In Koshi Province, Dharan Sub-Metropolitan City in Sunsari, and in Lumbini Province, Kotahimai Rural Municipality in Rupandehi and Shuddhodhan Rural Municipality in Kapilvastu have not brought their budgets. Dharan is the only sub-metropolitan city unable to bring its budget. After then-mayor Harka Sampang resigned before the House of Representatives election last Falgun, Deputy Mayor Aindravikram Begha has been serving as acting mayor. The budget could not be brought due to disputes among ward chairs there.
Acting Mayor Begha said that an agreement has been reached to present the budget on 21st of Shrawan. “Due to past disputes, we could not bring the budget on time. Now, a municipal assembly has been called for the 21st of Shrawan. Most likely, the budget will be presented that day,” he said. He informed that the way to bring the budget was opened after agreeing to allocate 260 million rupees for ward-level budgets.
Maulapur Municipality Mayor Reena Kumari Sah said that since an agreement has been reached among the parties, the budget will be brought on 11th of Shrawan. “Because political consensus could not be reached, the budget could not come on time. That’s why there is a budget holiday. We have not been able to spend or collect taxes,” she said.
Garuda Municipality Mayor Kanthamani Prasad Kalwar said that the budget was stalled after the chief administrative officer requested a transfer and went to Kathmandu at the beginning of Asar. “We were preparing to bring the budget. But since there was no chief administrative officer, we could not call the municipal assembly,” he said. According to him, even salaries for education, health, and staff have been halted.
Fatuwa Bijaypur Municipality Mayor Gopal Rai Yadav said that earlier disagreements among elected representatives and now added staff problems have prevented the timely presentation of the budget. He said efforts are being made to bring the budget within a few days. Kamala Municipality Mayor Bishweshwar Yadav of Dhanusha said the budget was stalled after the chief administrative officer became unreachable. “The budget discussion was ongoing. The chief administrative officer became unreachable. We have learned that he went to Kathmandu and submitted a transfer request,” he said. He added that another chief administrative officer has been requested from the federal government and the budget will be brought as soon as one arrives.
Chhipaharmai Rural Municipality Chair Manoj Kumar of Parsa said the budget was stalled due to the absence of a chief administrative officer. He said the budget would be brought within Shrawan. Shuddhodhan Rural Municipality Chair Kamlesh Sharan Chaudhary of Kapilvastu also said there was a problem due to the lack of a chief administrative officer. He informed that, after consulting with the federal government and assigning local staff, the budget will now be brought.
In Kotahimai Rural Municipality of Rupandehi, the budget has been stalled due to disputes between the rural municipality chair and the chief administrative officer. Spokesperson Sanjay Kumar Saini admitted that the municipality has been caught in the crossfire of the dispute between the mayor and the chief administrative officer. “The rural municipality should have operated according to policy and regulations, but that did not happen. The chief administrative officer went to Kathmandu. That’s why the budget could not be brought,” he said.
The Ministry of Federal Affairs and General Administration has stated that continuous discussions are being held with the concerned local levels to resolve budget-related issues. According to Deputy Secretary Deepak Dhakal of the Federal Affairs Division, discussions were also held on Thursday with the National Association of Rural Municipalities, the Municipal Association, and representatives of the concerned local levels on this issue. “Most likely, all local levels will bring their budgets within a few days,” he said.
According to Dhakal, the main problems in most local levels are the lack of chief administrative officers and disputes among elected representatives. Bhim Prasad Dhungana, president of the Municipal Association, said efforts are being made to find a solution through coordination between the local levels and the federal government. Rajendra Pyakurel, executive director of the National Association of Rural Municipalities, also said that the ministry, the Municipal Association, and the National Association of Rural Municipalities are jointly working to create an environment for the stalled local levels to bring their budgets soon.
