Centre questions 23 local govts for budget delays

Kathmandu, July 1

The federal government has sought clarification from 23 local governments that failed to present their annual policy, programme and budget for the Fiscal Year 2026/27 within the stipulated deadline.

Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has sent official letters to the concerned rural municipalities and municipalities on Wednesday to submit a detailed explanation outlining the current status of the budget preparation process and the reasons for the delay.

The local governments are asked to submit their response within three days.

Under the Local Government Operation Act, 2017 and the Intergovernmental Fiscal Arrangement Act, 2017, local governments are legally required to have their revenue and expenditure estimates (budget) for the forthcoming fiscal year approved by the executive and presented to the local assembly by 24 June (10 Ashadh), with final approval to be completed by mid-July.

The Ministry said that, based on information entered into its online portal and reports it has received, a few local governments have not yet presented their budget for the FY 2026/27 within the timeframe prescribed by law, prompting the request for clarification.

The letter from the Federal Affairs Ministry also asks local governments to specify the current stage of the budget preparation process, explain why they were unable to present the budget to the assembly within the prescribed deadline, and indicate whether any additional coordination or facilitation from the Ministry is required. The requested information should also be submitted within three days of receiving the letter.

In addition, the Ministry has requested local governments to provide the schedule of forthcoming meetings of their assemblies to help ensure that the budget can be endorsed by mid-July.

The Ministry said the initiative is intended to ensure that the budget preparation process at the local level is completed on time and that the legal provisions governing the process are fully implemented.

Published in The Rising Nepal daily on 2 July 2026.