Five Metropolises unveil budget for new FY

Kathmandu, June 25: Of the six metropolitan cities, five, and most local levels have presented their budget for the upcoming fiscal year 2025/26, within the deadline specified by the constitution.  

Constitutionally, the local levels need to present their budget estimates by Asar 10.

However, Kathmandu Metropolitan City, the biggest local level, failed to abide by the deadline thanks to disputes between Mayor Balendra Shah and the ward chairs. 

Of the five, Lalitpur Metropolitan City and Biratnagar Metropolitan City presented their budget on Tuesday while Pokhara, Bhartapur and Birgunj did it earlier. 

The total budget of five metropolises is around Rs. 28.27 billion. 

Lalitpur: Rs. 7.47 billion

Lalitpur Metropolitan City has unveiled a budget of Rs. 7.47 billion for the fiscal year 2025/26.

Deputy Mayor of the Lalitpur Metropolitan City (LMC) Manjali Shakya Bajracharya presented the budget for the next fiscal year 2025/26 in the 7th municipal assembly Tuesday.

The budget has prioritised areas such as prosperity and good governance for the city, heritage and cultural preservation, sustainable infrastructure, promotion of greenery, environment, self-reliant economy, quality education, clean drinking water for every household, social development, health, and youth employment.

The budget of the metropolis for the next fiscal year is slightly higher than the current fiscal year’s budget. 

The metropolis had unveiled a budget of Rs. 7.46 billion for the current fiscal year 2024/25. 

Of the total budget estimation, Rs. 2.96 billion (40 per cent) has been allocated for recurrent expenditure while Rs. 4.50 billion (60 per cent) has been allocated for capital expenditure.

The metropolitan city has estimated a revenue mobilisation of Rs. 1.41 billion from federal government, Rs. 182 million from the Bagmati Province government, and Rs. 3.71 billion from internal income, including internal revenue.

Similarly, it is estimated that around Rs. 951 million will be managed from inter-governmental authorities, and Rs. 85 million from people’s participation in development activities.

It said that the budget deficit of Rs. 1.12 billion would be managed from the bank balance.

She said that the tax awareness programme that has been implemented from the past to increase the tax base will be continued in the news year.

Other alternative measures/strategies will be adopted to increase the tax base, she said.

The budget includes that property tax will be waived for houses built within the World Heritage Area in compliance with heritage rules.

If a suitable proposal is received from the private sector regarding parking management for public facilities, facilitation in map approval and fee waivers will be provided.

The budget has made provision for a 5 per cent discount on property tax if Lalitpur residents who use electric vehicles request a property tax exemption. 

Biratnagar: Rs. 4.04 billion

Similarly, Biratnagar Metropolitan City has presented a budget of Rs. 4.04 billion for the upcoming fiscal year 2025/26. 

Deputy Mayor of the metropolitan city Shilpa Nirala Karki presented the annual income and expenditure estimate of the metropolis for the next fiscal year at the 16th municipal assembly of the metropolitan city Tuesday.

The metropolis has allocated a budget of Rs 1.68 billion for infrastructure development, Rs. 1.89 billion for social development, Rs. 29.62 million for economic development, Rs. 31 million for forest, environment and disaster management and Rs. 33 million for good governance and institutional development. 

The budget of around of Rs. 50 million has been allocated for the principal and interest payment of the loan taken by the Metropolitan City. 

The Metropolitan City has estimated that Rs. 647.5 million will be spent on office operations and administrative expenses, while Rs. 80 million has been allocated for payment of ongoing projects.

The metropolis has estimated to generate income of Rs. 1.4 billion from internal revenue, Rs. 833.4 million from conditional and supplementary grants from the federal government, Rs. 343.4 million from the federal government's financial grant, Rs. 36.23 million from the provincial government's financial grant, Rs. 1.24 billion from revenue sharing, and Rs 42.36 million from the provincial government's conditional grant.

Similarly, the metropolis has estimated to mobilise Rs. 15 million from the road board, Rs. 1.6 million from other organisations and Rs. 140 million from cash balance.

According to the metropolitan city, it has prepared the budget for the coming year by prioritising infrastructure, social development, and education sectors.

Presenting the budget, Deputy Mayor Karki claimed that the budget was prepared through extensive discussions and consensus with political parties, industrialists, businessmen and civil society. She expressed confidence that the budget would contribute to the campaign to build a prosperous metropolis.

Birgunj: Rs. 3.22 billion 

Likewise, Birgunj Metropolitan City has unveiled the budget of Rs. 3.22 billion for the upcoming fiscal year 2025/26.

Deputy Mayor of the Birgunj Metropolitan City Imtiyaj Aalam presented the metropolis's income and expenditure estimation for the next fiscal year at the 17th municipal council on Monday. The size of the budget of the metropolitan city for the next fiscal year is higher by Rs. 330 million than the budget size of the current fiscal year 2024/25. 

The metropolitan city had presented a budget of Rs. 2.89 billion for the current fiscal year 2024/25.

The metropolis has allocated a budget of Rs. 2.26 billion (70.24 per cent) for the recurrent expenditure, Rs. 923 million (28.64 per cent) for capital expenditure and Rs. 36.4 million (1.12 per cent) for financial management.

Presenting the budget, Deputy Mayor Aalam said that it has estimated to mobilise Rs. 1.15 billion from internal revenue, Rs. 1.37 billion from fiscal equalisation from federal government, Rs. 237 million from federal revenue sharing, Rs. 50.2 million from provincial intergovernmental fiscal transfer and Rs. 16.7 million from provincial revenue sharing.

It has estimated to mobile Rs. 250 million from real estate registration fees and Rs. 150 million from cash balance of the current fiscal year.

He said that education, health, agriculture, tourism, sanitation, environmental protection, quality physical infrastructure and digital-friendly service delivery are the priorities of the budget for the coming fiscal year.

Mayor of Birgunj Metropolitan City Rajesh Man Singh had presented the policy and programme for the coming fiscal year at the municipal assembly. 

Bharatpur: Rs. 5.19 billion

Bharatpur Metropolitan City, Chitwan, has presented a budget of Rs. 5.19 billion for the upcoming fiscal year 2025/26. Deputy Mayor of the Bharatpur Metropolitan City Chitrasen Adhikari presented the budget at the municipal assembly on Sunday.

The budget presented for the next fiscal year is Rs. 1.36 billion lower than the budget of the current fiscal year. 

Bharatpur Metropolitan City had presented a budget of Rs. 5.46 billion for the current fiscal year 2024/25.

The sources of the budget include internal income of Rs. 1.80 billion and inter-government financial transfer of Rs. 2.15 billion. 

The metropolis has estimated a revenue mobilisation of Rs. 319 million from revenue sharing of federal government and Rs. 140 million from revenue sharing of Bagmati Province government.

Similarly, the metropolis has estimated a revenue collection of Rs. 700 million from bank balance, Rs. 500 million from people’s participation and Rs. 30 million from Road Board Nepal.

Similarly, 29 wards have been allocated a budget ranging from a minimum of Rs. 32.18 million to a maximum of Rs. 34.34 million.

The metropolitan city has prioritised issues such as smart roads, blacktop roads including sewers, green parks in the area of ​​infrastructure development, education, health, women and child empowerment in the area of ​​social transformation, and agricultural subsidies, self-employment, and digital governance in the area of ​​economic self-reliance. 

Pokhara: Rs. 8.35 billion

Meanwhile, Pokhara Metropolitan City has presented the budget of Rs. 8.35 billion for the fiscal year 2025/26.

During the 17th municipal assembly that started on Sunday, Deputy Mayor Manju Devi Gurung presented the budget of Rs. 8.35 billion. 

The budget estimates include income of Rs. 3.13 billion from conditional federal grants, Rs. 330.8 million from federal revenue sharing, Rs. 528.7 million in federal equalisation grants, and Rs. 81.5 million in provincial equalisation grants. 

The internal revenue for the upcoming year is projected to be Rs. 5.22 billion, with Rs. 1.01 billion from local revenue sharing and Rs. 42.8 million from provincial revenue sharing.

(With inputs from Deepak Gautam, Birgunj and Gokul Parajuli, Biratnagar.)