Kathmandu Fails to Announce Budget on Time, While Five Other Metropolises Unveil FY 2082/83 Budgets

Despite the legal provision requiring all local governments in Nepal to unveil their annual budget by Asar 10 (June–July), Kathmandu Metropolitan City (KMC), the largest in terms of population, failed to do so this year. As per Section 71 of the Local Government Operation Act, 2074, and Section 21 of the Intergovernmental Fiscal Arrangement Act, 2074, every local unit must present its budget on time.

However, disagreements between Mayor Balen Shah and Chief Administrative Officer Saroj Guraagai have led to the failure of conducting even the budget ceiling estimation meeting. This internal conflict has prevented the city from fulfilling its legal obligation.

Meanwhile, the other five metropolises in Nepal have successfully published their respective budgets for the upcoming fiscal year 2082/83.

Pokhara Metropolitan City: Largest Budget

Pokhara Metropolitan City has announced the largest budget of NPR 8.35 billion. Of this, NPR 3.13 billion is expected from federal conditional grants and NPR 5.22 billion from internal revenues. Key allocations include NPR 2.33 billion for infrastructure, NPR 1 billion for ward-level operations, and NPR 95 million for the executive office.

Lalitpur Metropolitan City:

Lalitpur has presented a budget of NPR 7.46 billion. NPR 2.78 billion is allocated for recurrent expenses and NPR 4.67 billion for capital expenditure. The budget will be sourced from NPR 1.41 billion in federal grants, NPR 182 million in provincial grants, and NPR 3.71 billion in internal revenue.

Bharatpur Metropolitan City:

Bharatpur has brought forward a budget of NPR 5.19 billion. The sources include NPR 1.80 billion in internal income, NPR 2.15 billion from intergovernmental transfers, and NPR 70 million from bank balances. The city also expects contributions from local participation and Nepal Road Board.

Biratnagar Metropolitan City:

Biratnagar’s budget stands at NPR 4.40 billion. Sources include NPR 834 million in federal grants, NPR 423 million in provincial grants, and NPR 1.40 billion in internal revenue. Major income sources include VAT, vehicle tax, house and land registration fees, and entertainment and advertisement taxes.

Birgunj Metropolitan City: Smallest Budget

Birgunj has announced the smallest budget among the metropolises at NPR 3.22 billion. Of this, NPR 1.15 billion will be sourced from internal revenue, NPR 1.37 billion from federal transfers, and the remaining from provincial transfers, house registration fees, and cash reserves. Notably, NPR 2.26 billion is allocated to recurrent expenses.

In summary, all major metropolitan cities except Kathmandu have adhered to the budget deadline and published their financial plans for the upcoming fiscal year 2082/83.