39 Madhes local units yet to unveil budget

By Dhirendra Prasad Shah,Janakpur, Sept. 8: Two months of the current Fiscal Year 2025/26 have nearly passed but 39 local units in Madhes Province have still not announced budgets for this year. By law, budgets for the current fiscal year should have been presented by Ashadh 10 (June 24) of the last FY 2024/25.

Madhes Province comprises 136 local units, including one metropolitan city, three sub-metropolitan cities, 73 municipalities, and 59 rural municipalities. Of these, 97 have already presented their budgets, while one sub-metropolitan city, 18 municipalities, and 20 rural municipalities have yet to do so. This means 71 per cent of local units have presented their budgets, while 28.67 per cent have not.

According to the clause 71(1) of the Local Government Operation Act, 2074, the vice-chairperson, deputy mayor, or a member of the executive designated by the executive must have presented the estimated revenue and expenditure (budget) for the coming fiscal year approved by the executive and tabled in the assembly by Ashadh 10. 

Clause 71(6) of the same law stipulates that the assembly must endorse the presented budget by the end of Ashadh (mid-July). However, due to internal disputes and problems among people’s representatives, 39 local units within Madhes Province have so far failed to present their budgets.

According to data entered by the local units into the portal of the Ministry of Federal Affairs and General Administration (MoFAGA), the highest number of pending budgets is seen in Dhanusha. Of the 18 local units in this district, 10 – including the provincial capital Janakpurdham Sub-Metropolitan City - have not yet presented their budgets.

The highest compliance is in Mahottari, where only Sonma Rural Municipality out of 15 local units has not announced its budget. Similarly, in Saptari, six out of 18 local units have not presented budgets, the Ministry said. 

Based on details entered by the concerned local units to the MoFAGA’s portal, in Siraha, three out of 17, in Sarlahi, five out of 20, in Rautahat, five out of 18, in Bara, four out of 16, and in Parsa, five out of 14 local units have not yet presented their budgets.

Vinay Kumar Yadav, Mayor of Nagarain Municipality in Dhanusha, which has yet to present the budget, said that no municipal assembly had been held due to the failure of political parties to reach a consensus. “We called the assembly meeting four or five times, but as the CPN-UML holds a majority of members and they did not participate, the assembly could not convene,” he said, adding that efforts to reach an agreement are still ongoing.

Meanwhile, Manoj Kumar Sah, Mayor of Janakpurdham, the only sub-metropolitan listed on the ministry’s portal as not having submitted its budget, claimed that the budget was presented on 30 Ashadh. He said, “We had presented policies and programmes on 10 Ashadh and the budget in mid-July. The reason it has not been updated on the ministry’s portal is something I will confirm with the staff.”

Failure of local units to bring forward their budgets within the stipulated timeframe has raised questions over governance. It will affect the tender process for development works, regular administrative expenses, and the delivery of services at the local level.