Flawed drainage system blamed For flooding at Maitighar

Kathmandu, July 22

Kathmandu Metropolitan City's Acting Mayor Sunita Dangol has instructed officials from partner agencies to submit a technical report identifying the causes of flooding in the Maitighar area.

Dangol issued the directive on Tuesday evening during an inspection of the flood-affected site, the KMC informed in a statement on Wednesday morning. Officials from the National Disaster Risk Reduction and Management Authority, Kathmandu Upatyaka Khanepani Limited, the Kathmandu Division Road Office and relevant departments of Kathmandu Metropolitan City were asked to prepare the report.

The inspection was attended by representatives from the Kathmandu Valley Traffic Police Office, the Metropolitan City's Disaster Management Department, Public Works Department, Urban Planning Commission and the Metropolitan Police.

According to preliminary observations presented by Kathmandu Division Road Office Chief Subodh Devkota, the area has a 90-centimetre drainage pipe that connects to a 60-centimetre outlet, creating a bottleneck in the drainage system.

Officials also said that the construction of buildings around the Maitighar Mandala area had obstructed the drainage network and stressed the need to remove such blockages.

During the inspection, Dangol said the Metropolitan City would work with the local administration and agencies responsible for infrastructure development and public services to remove all obstructions in the drainage system around Maitighar Mandala and prevent future flooding.

KMC announces tax incentives, penalty waivers for FY 2026/27

Kathmandu, July 18

Kathmandu Metropolitan City (KMC) has introduced a range of tax incentives and penalty waivers for taxpayers for the current Fiscal Year 2026/27. Through its Kathmandu Metropolitan City Finance Act, 2083, the Capital city is implementing tax concessions and penalty remission for a year.

The Act came into effect after being authenticated by Acting Mayor Sunita Dangol on July 16. The legislation provides taxpayers with a range of special discounts, concessions and waivers of penalties on outstanding tax liabilities, the KMC informed in a statement on Saturday.

It said that the special incentives have been announced to encourage taxpayers to pay their dues on time.

Taxpayers who settle their property tax, business tax and rental tax for this fiscal year by the end of mid-October 2026 will receive a 10 per cent discount on the total tax payable.

This period is the first quarter of the current fiscal year.

Likewise, the metropolis has announced significant relief for taxpayers with unpaid taxes from previous years. Taxpayers who clear all outstanding tax liabilities in a single payment by mid-October will have all penalties accumulated in previous years fully waived.

The city has also introduced special provisions to encourage small businesses and support targeted groups. Businesses with capital of up to Rs 500,000, registered in the name of a woman, indigenous person, dalit, person with a disability, or a young entrepreneur under the age of 35, will receive a 40 per cent discount if they pay their taxes by mid-October.

If the business owner is a permanent resident of Kathmandu Metropolitan City, the discount will increase to 50 per cent.

"New industries providing employment to at least 20 people will be entitled to a 95 per cent reduction in business tax for up to three years," read the statement. To promote tourism and improve urban management, the Capital city is implementing an additional 10 per cent discount on property tax for hotels and resorts.

Similarly, buildings constructed solely for commercial parking purposes will be fully exempt from property tax for 10 years from the date of completion. Residential buildings equipped with rainwater recharge systems within their compounds will also be eligible for up to a 95 per cent reduction in property tax.

As per the new rules, taxpayers earning up to Rs 240,000 annually from rent need to pay 5 per cent rental tax, while those earning more than Rs 240,000 annually have to pay 7 per cent rental tax.

The Act also exempts one business signboard of up to 15 square feet used solely for business identification from advertisement tax, and signboards produced in the Ranjana script will receive a 95 per cent tax concession. This measure is taken to promote local language and culture, said KMC.

Likewise, to ease taxpayers' financial burden, KMC has allowed taxes for the current fiscal year to be paid in up to three instalments. Taxpayers may pay 40 per cent of the total amount in the first instalment and 30 per cent each in the second and third instalments.

Taxpayers with outstanding liabilities exceeding Rs 10 million may also apply for a multi-year instalment facility, but this must be approved by the Metropolitan City.

According to KMC, it adopts a stringent approach towards taxpayers who repeatedly ignore tax obligations and official notices. Under the new provisions, the City may seal the business premises of tax defaulters, freeze their bank accounts and recover unpaid taxes in the same manner as government dues.

Published in The Rising Nepal daily on 19 July 2026.         

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.      

Metropolitan Cities unveil budget for FY 2026/27

Kathmandu, June 24:

Six metropolitan cities in Nepal have announced their budget for the Fiscal Year 2026/27. As per the constitutional provision, all local bodies should announce the budget for the next year by Asar 10, June 24 for this year. Most of the sub-metropolitan cities, municipalities and rural municipalities also announced budgets with regular and innovative programmes and projects.

The local bodies have largely depended on the federal grants for their development works, and even for the recurrent expenditures.

Lalitpur: Rs. 7.48 billion

Lalitpur Metropolitan City has unveiled a budget of Rs. 7.48 billion for the upcoming fiscal year 2026/27.

Deputy Mayor Manjali Shakya presented the annual income and expenditure estimates of the metropolis at the 9th Municipal Assembly on Wednesday.

The budget for the next fiscal year is slightly higher than the budget presented for the current fiscal year. The metropolis had allocated Rs. 7.47 billion for the fiscal year 2025/26.

The metropolis has proposed an allocation of Rs. 3.25 billion for recurrent expenditure, emphasising prudent, transparent, and justified public spending. The allocation for recurrent expenditure is 9 per cent higher than that of the current fiscal year.

Meanwhile, around Rs. 4.24 billion has been set aside for capital expenditure. This is lower than the Rs. 4.51 billion allocated in the current fiscal year, reflecting a reduction of about Rs. 270 million, or 6 per cent.

It is estimated that Rs. 3.35 billion will be collected from internal sources, including internal revenue, land revenue, entertainment tax, and other taxes. In addition, Rs. 60 million is expected to be mobilised through public participation in development projects.

The metropolis expects to receive Rs. 1.36 billion from the federal government and Rs. 176.39 million from the provincial government under various grants and revenue-sharing arrangements.

Under intergovernmental transfers and delegated programmes, the metropolis anticipates receiving Rs. 1.06 billion.

A further Rs. 1.47 billion required to finance the proposed budget will be covered through available cash reserves.

Presenting the budget, Deputy Mayor Shakya said that priority has been given to institutional strengthening, sustainable urban development, employment generation, and heritage preservation.

Among the top priorities are institutional strengthening and good governance, with a focus on improving accountability, transparency, and the effectiveness of municipal administration.

The city has also emphasised sustainable infrastructure and urban development to support planned urbanisation and improve civic amenities.

The budget has set a target of ensuring access to clean drinking water for every household, expanding the use of technology, and delivering citizen-friendly, accountable, and technology-driven public services.

Birgunj: Rs. 4.42 billion

Our Parsa correspondent Dipak Gautam adds: Birgunj Metropolitan City has unveiled a budget of Rs. 4.42 billion for the fiscal year 2026/27 prioritising infrastructure development, education, and healthcare services.

Municipal Executive Member Jagat Sah Kanu, on behalf of Acting Mayor Imtiyaj Alam, presented the budget at the 20th Municipal Assembly on Wednesday.

The new budget for the next fiscal year is Rs. 730 million higher than the budget for the current fiscal year 2025/26.

Of the total budget, about Rs. 2.40 billion (54.3 per cent) has been allocated for recurrent expenditure, while Rs. 1.97 billion (44.6 per cent) has been earmarked for capital expenditure.

Likewise, Rs. 50 million (1.1 per cent) has been allocated for financial management.

To finance the budget, the metropolitan city expects to receive Rs. 1.98 billion through federal fiscal transfers, Rs. 1.48 billion from internal revenue, and Rs. 246.88 million through federal revenue sharing.

In addition, Rs. 50 million will come from provincial fiscal transfers, while Rs. 16.7 million is expected through provincial revenue sharing.

The city also plans to generate Rs. 450 million from land registration fees and utilise Rs. 46.9 million from the previous year's cash balance.

Furthermore, Rs. 150 million will be secured from the Town Development Fund to support the implementation of various development projects and programmes outlined in the budget.

During the assembly, Acting Mayor Alam also presented the municipality’s annual policies and programmes.

Alam said that education and healthcare services, urban sanitation management, forest and environmental conservation, agriculture, tourism and industry promotion, quality physical infrastructure, and technology-based public service delivery are the major priorities of the new budget.

The metropolis has allocated Rs. 890.6 million for an Integrated Drinking Water and Sewerage Management Project while Rs. 150 million is allocated for the development of an integrated solid waste management system.

Similarly, Rs. 130 million has been earmarked for the reconstruction of the metropolitan administrative building and ward offices in Ward Nos. 10, 14, and 26, which were destroyed in a fire during the Gen Z movement.

 

Biratnagar: 3.56 billion

Meanwhile, our Biratnagar correspondent Shashidhar Parajuli adds: Biratnagar Metropolitan City has unveiled a budget of Rs. 3.56 billion for the Fiscal Year 2026/27.

Presenting the policies, programmes and budget at the metropolitan city's 18th Municipal Assembly, Deputy Mayor Shilpa Niraula Karki said priority had been given to social development and technology alongside physical infrastructure.

The metropolitan city has allocated Rs. 762.87 million for recurrent expenditure, stating that the major portion of the budget has been focused on development works and social security.

For the upcoming fiscal year, the metropolis has set a target of collecting Rs 1.27 billion from internal sources.

It is estimated to receive Rs. 334.3 million through fiscal equalisation grants from the federal government, Rs. 732.9 million through conditional grants and Rs. 5.6 million in capital grants.

Deputy Mayor Karki said the provincial government would provide Rs. 36.25 million in equalisation grants and a total of Rs. 142.674 million through other grants.

The budget has outlined new initiatives in the field of information technology. Under social development, funds have been allocated for the concept of ‘Mega Schools’, capable of accommodating between 5,000 and 10,000 students, and for the operation of ‘booster classes’ aimed at supporting academically weak students.

In the health sector, Biratnagar aims to be a fully institutional delivery metropolis, where free portable ultrasound scans and ANC profile tests will be provided to pregnant women.

Likewise, at the infrastructure front, the metropolitan city has allocated Rs. 435.632 million for ward-level projects. Rs. 150 million has been earmarked for flagship projects and multi-year contracts, Rs. 100 million for maintenance works and Rs. 10 million for a matching fund.

Bharatpur: Rs. 5.51 billion

Earlier, on Monday, Bharatpur Metropolitan City unveiled a budget of Rs. 5.51 billion for the FY 2026/27. The size of next year’s budget is larger by about Rs. 3 million against that of this year’s budget.

Acting Mayor Chitrasen Adhikari presented the budget at the metropolis’ 19th Municipal Assembly.

For the next fiscal year, the metropolis has projected Rs. 2.04 billion in internal revenue, including proceeds from land registration and the sharing of royalties from mines and mineral resources. It expects to receive Rs. 2.17 billion through intergovernmental fiscal transfers from the federal and provincial governments, Rs. 331.2 million from the federal revenue-sharing mechanism, and Rs. 134 million from revenue sharing by the Bagmati Provincial Government.

Other projected sources of income include Rs. 40 million from the Town Development Fund, Rs. 30 million through public participation, Rs. 745 million in bank balances, and Rs. 19.3 million from the Road Board Nepal.

The metropolis has estimated expenditure of Rs. 1.25 billion under intergovernmental delegated authority and social security schemes.

It has allocated Rs. 600 million to complete projects left unfinished in the previous and current fiscal years and to clear outstanding payments.

Likewise, Rs. 140 million has been allocated for the Gautam Buddha Cricket Stadium, while Rs. 90 million has been set aside for ongoing construction work, and Rs. 117.5 million for education-related programmes.

Pokhara: 7.15 billion

Similarly, Pokhara Metropolitan City presented a budget of Rs. 7.15 billion for the upcoming fiscal year 2026/27. Deputy Mayor Manju Devi Gurung tabled the budget during the 19th municipal assembly on Friday.

Of the total allocation, 55 per cent has been set aside for recurrent expenditure, while 45 per cent is allocated for capital expenditure, according to the budget statement. The metropolis is expected to receive Rs. 3.18 billion in fiscal transfers from the federal government.

This includes Rs. 2.61 billion in conditional grants, Rs. 55 million in special grants, Rs. 18.2 million in equalisation grants, and Rs. 49.37 million in supplementary grants.

From the provincial government, the metropolis is projected to receive Rs. 91.54 million in total financial transfers, including Rs. 81.536 million in equalisation grants, Rs. 6 million in supplementary grants, and Rs. 4 million in special grants from Gandaki Province.

In terms of revenue sharing, the metropolis has estimated Rs. 343.47 million from the federal government, Rs. 40.9 million from provincial sources, and Rs. 1.31 billion from local revenue sharing. It is projected that Rs. 2.48 billion will be received from internal sources.

Kathmandu: 25.88 billion

Likewise, Kathmandu Metropolitan City (KMC) announced a Rs. 25.88 billion budget for fiscal year 2026/27, on Thursday, June 18. It prioritised infrastructure, environment, education, good governance, employment and heritage conservation.

Acting Mayor Sunita Dangol presented the budget at the 19th Municipal Assembly. Of the total amount, Rs. 25.13 billion will come through the municipal consolidated fund and Rs. 750 million from external liabilities. KMC expects Rs. 20.18 billion from internal revenue and bank balance and Rs. 4.93 billion from federal and provincial grants and revenue sharing.

Infrastructure received the largest allocation of Rs. 15.31 billion, followed by office operations and administration with Rs. 4.71 billion. Social development has been allocated Rs. 2.42 billion, good governance Rs. 2.13 billion and economic development Rs. 541.8 million.

Major allocations include Rs. 2.53 billion for heritage conservation, Rs. 1.71 billion for education, Rs. 1.22 billion for environmental management, Rs. 700 million for health services, Rs. 430 million for greenery promotion, Rs. 410 million for information technology and Rs. 360 million for disaster management.

The city also announced tax incentives, including discounts for new taxpayers and reduced rental tax rates.

Published in The Rising Nepal daily on 25 June 2026.   

Task Force suggests creating 'digital profiles' of Nepalis workers abroad

Kathmandu, May 8

The Inter-Ministerial High Level Task Force has suggested the government to immediately create the 'digital profiles' and geolocation mapping data of Nepali workers residing in conflict-affecting or high-risk areas.

"Analyse risk levels and remain prepared for the ‘safe relocation’ and, where necessary, repatriation of Nepalis from affected areas. Establish 24-hour ‘emergency hotlines' and dedicated help desks at relevant Nepali embassies," the Task Force suggested in its report submitted to the government.

The government had formed the Task Force was formed, as per its 100-day agenda on governance reforms, on March 31 under the coordination of Foreign Minister Shisir Khanal. It had 10 members including secretaries from the ministries of Foreing Affairs, Labour, Finance, Industry, Energy and Tourism.

Its mandate was to study the impact of international and regional crises, especially in the West Asian nations, on Nepali migrant workers and economy and to prepare necessary policy and strategy to address the existing and emerging challenges. 

The 100-day agenda on governance reform of the government required to form such task

Earlier, the government had also formed an Emergency Rsponse Team on March 3, led by Foreign Secretary Amrit Bahadur Rai, to respond to the immediate needs of the Nepali workers in crisis.

According to the MoFA, there are 1.72 million Nepali migrant workers in 13 countries in the region whose safety has troubled the government here.

Nepalis in Iran, Israel, Egypt, Oman, Qatar, Kuwait, Jordan, Bahrain, Saudi Arabia, the United Arab Emirates (UAE), Lebanon, Iraq and Cyprus were or likely to be affected by the Israel-Iran war that has affected about half a dozen countries in West Asia. Cyprus is a European country while Egypt is in northern Africa.

The largest number of Nepalis are in the UAE with a presence of 478,144, followed by Saudi Arabia at 383,865, Qatar at 357,000, Kuwait at 175,000, and Iraq at 30,000. There are only six Nepali citizens in Iran and 500 in Egypt.

Two months ago, the MoFA said that the government was facing confusion in absence of established mechanism for rescue and repatriation of Nepalis from West Asia.

Meanwhile, the tensions at the Strait of Hormuz has pushed the price of petroleum products rapidly up which also caused the increase in transportation.

 

Short- and long-term policy suggestions

The summary of the report is made public by the Ministry of Foreign Affairs (MoFA) at a press briefing on Friday. It recommended the government to define short-term actions within 3–6 months, medium-term actions within 6 months to 2 years, and long-term actions within 2–5 years for better management of foreign employment.

According to the Task Force, the government should conduct skill mapping of the returnee migrants and launch skill-employment matching programmes to absorb returning skilled manpower into domestic industries. Skills acquired abroad should undergo immediate fast-track testing and certification through the National Skill Testing Board, read the report.

The report also suggested to operate programmes such as ‘cash-for-work’ to address immediate livelihood crises, and to provide entrepreneurship training and seed capital or machinery grants for those wishing to become self-employed.

Ram Kaji Khadka, Joint Secretary and Head of the Central Asia, West Asia and Africa Division at the MoFA, said that the current crisis in the region had increased the security concerns, expenses of Nepali workers as well as tourists while foreign investment and number of tourists has gone down significantly affecting the local and national economy.

"This could result in Nepali migrant workers psychological wellbeing as well as economic pressures back home. Many families could fall into a debt trap if the crisis sustained and Nepali workers are forced to return home," he said.

 

Creating reintegration fund at local level

As the medium-term policy, the Task Force maintained that the local level must mandatorily arrange a 'reintegration fund' in their annual plans. The government should run programmes to provide concessional loans without collateral to returnee workers to start business, support seed money to establish small and medium enterprises (SMEs) and startups based on innovative ideas.

Similarly, providing high-level vocational training to returnee workers according to the current demand sectors such as tourism IT and construction, encouraging commercial farming, and establishing mentorship and networks for aspiring entrepreneurs are also suggested.

Other policy proposals are mobilising cooperatives to pool the small capital of returnee workers and operating collective investment projects, arranging local branding, constructing returnee market hub in local bodies, and launching digital skill bank to facilitate direct contact between workers and employers.

 

Substituting petroleum products, a priority

It is important to ensure at least three months’ supply by fully utilising the strategic storage capacity for petroleum products and raw materials. The Task Force suggested strengthening the ‘Price Stabilisation Fund’ while also implementing a policy of blending ethanol into petrol to reduce dependence on imported fuel, immediately. Promotion of electric vehicles, and work from home policy could also be the options.

Promoting the use of electric stoves, reducing reliance on the LPG, increasing domestic electricity consumption, and introducing emergency concessional tariffs during cooking hours are also recommended. Other suggestions include coordinating with airlines to keep airfares affordable, providing emergency tax relief on aviation turbine fuel (ATF), and providing 100 per cent waiver on landing and parking fees for new airlines operating the international airports in Bhairahawa and Pokhara.

"Strongly communicate through international media that Nepal is safe and open. Introduce special concessions and destination packages for domestic tourists. Further simplify the online visa system," it said.

In the medium term, the Task Force recommended to diversify the energy sources, reduce subsidies on LPG, enhance cross-border trade of electricity, provide concessional loans to convert coal or petroleum based industrial furnace and boilers to electric systems and establish battery swapping stations and large charging hubs.

 

Envoys to be appointed via regular route

Meanwhile, Spokesperson of MoFA, Lok Bahadur Poudel Chhetri said that the appointing ambassadors through competitive approach is not the policy of the government. "The information being circulating on social media is not true," he said while adding that the MoFA is going to follow the established and regular process to appoint the envoys.

He reiterated that the government is trying to resolve the 'Lipulek Issue' through dialogue with India and China on the basis of historical evidences. 

Published in The Rising Nepal daily on 9 May 2026.           

Chronic budget delays hamper local governments

49 local bodies fail to announce budget within legal deadline

 

Kathmandu, July 12

All the local governments across the country are well-aware that they have to announce their budget for the upcoming fiscal year by Ashadh 10 of Nepali calendar (June 24 in case of this year) which is a legal provision in the Intergovernmental Fiscal Arrangement Act, 2074.

According to it, the village executive and municipal executive shall at least submit (if not get ratified by the assembly of the local body) the estimates of revenues and expenditures (budget) of next fiscal year within Ashadh 10.

But at least 49 local governments, including the federal capital Kathmandu Metropolis, have not announced their budgets for the upcoming Fiscal Year 2025/26 by Friday, according to the Ministry of Federal Affairs and General Administration (MoFAGA).

However, statistics from the National Association of Rural Municipalities in Nepal (NARMIN) and Municipal Association of Nepal (MuAN) are different with 13 rural municipalities and 23 municipalities failing to announce their budget even after at least 10 days of the stipulated date.

Kalanidhi Devkota, Executive Director of MuAN, said the association is set to update the statistics on Sunday and expected that some remaining municipalities had submitted their budgets at their assemblies.

Although there is a calendar to formulate the annual budget, the MoFAGA had reminded the local governments to report their budget progress at the Ministry's portal on June 22. But by Friday, July 11, at least 216 (28.69 per cent) local governments have not updated information in the portal which means the official figure of local bodies that announced the budget is 537.

There are 753 local governments in Nepal comprising of six metropolitan cities, 11 sub-metropolises, 276 municipalities and 460 rural municipalities.

Status of FY 2025/26 Budget of Local Governments

S.N.	Province	Municipalities announced budget	Municipalities not-announced budget	Rural municipalities announced budget	Rural municipalities non-announced budget	Local bodies without budget
	Total	270	23	447	13	36
1.	Koshi	48	1	88	0	1
2.	Madhes	62	15	50	9	24
3.	Bagmati	41	4	73	1	5
4.	Gandaki	27	0	57	1	1
5.	Lumbini	34	2	71	2	4
6.	Karnali	24	1	54	0	1
7.	Sudurpaschim	34	0	54	0	0

Source: NARMIN and MuAN.

With 15 municipalities and nine rural municipalities yet to announce their budgets for the upcoming year, Madhes has become the worst performer among the provinces in the country (see table).

In Bagmati, four municipalities and one rural municipality are yet to announce their budgets while the number is four in Lumbini. Koshi, Gandaki and Karnali have one each local body being unable to announce their budget. Sudurpaschim is the only province that has all of its local bodies ready with the budget for the next year.

District-wise, Dhanusha has five municipalities that haven't announced their annual budget for the next fiscal followed by Saptari (4) and Rautahat (3).

Meanwhile, many municipalities' executives have only presented their budget statement to the local assemblies but the latter are yet to endorse it. Without the local assembly endorsing the budget, it couldn't be executed.

 

Chronic problem

Missing budget deadline has become a chronic challenge for many local governments. Last year, out of 753 local bodies, 103 couldn't present their budget for the current FY 2024/25 even after the end of the first quarter of the year. According to the statistics from the MoFAGA in last September, 47 municipalities from Madhes were without budget by then.

Likewise, 154 local bodies couldn't get their budget for FY 2023/24 endorsed by the local assembly even after the start of the new fiscal year. That year as well, local bodies in Madhes performed poorly with 63 local bodies failing to announce their budget after 25 days of the deadline. Karnali had four local bodies without budget then while Koshi had 29, Bagmati 24, Sudurpaschim 13 and Gandaki seven.

Similarly, about 193 local bodies couldn’t present their budget for FY 2020/21 by July 29, about five weeks after the deadline set by the law.

 

 

 

Kathmandu tales

 

The Federal Capital city Kathmandu Metropolis couldn't announce its budget until now and Mayor Balendra Shah convened its executive meeting after six months on Friday to decide the unveiling of the budget on Sunday afternoon.

It is said that the primary reason behind this was the ongoing dispute between Mayor Balendra Shah and the federal government over the controversial suspension and reinstatement of the KMC's Chief Administrative Officer Saroj Guragain, which resulted in a prolonged disruption in the city’s internal governance.

As a result, Mayor Shah could not convene meetings of the resource estimation and budget ceiling determination committee, the municipal executive, and the assembly, which are essential for finalising and approving the budget. Meeting of the municipal executives should be called every month.

 

Political reasons

According to local body experts and representatives, the budgets are delayed due to political conflict between the political parties at the local level or among the elected representatives.

"We observed that the budget has become the victim of the internal political conflict. There is a general tendency of non-cooperation among the political parties at the local level," said Prakash Tiwari, Chairman of Arjunchaupari Rural Municipality in Syangja district.

He said that no problems have been witnessed due to the lack of technical expertise, it's only the human-political reason behind it.

For example, Kamala Municipality of Dhanusha district couldn’t present its budget during the first half of the fiscal year because the opposition party boycotted the government policy and programmes and filed a case at the High Court in Janakpur. Mayor Bishweshor Yadav and Deputy Mayor Shiladevi Mandal are from Nepali Congress and opposition Janata Samajwadi Party obstructed the budget as its candidates were defeated by them.  

President of MuAN, Bhim Prasad Dhungana, expressed worries over the budget obstructions and said that the political parties that are active at the local level must remember that there is no concept of opposition there.

"The mayor and deputy mayor are the leaders who must think beyond their party-line and about the people," he said. "If any local body failed to ratify its budget by mid-July there would be problems in running the day-to-day operations, the municipal executive can sanction the development budgets. Even the salary distribution is obstructed."

Dhungana maintained that while there can be discussions and disputes within the executives and assembly, budget and development related works shouldn't be obstructed.

 

Budget process

According to the Intergovernmental Fiscal Arrangement Act, 2074, the local governments are required to submit the estimate of their expenditures, and estimated revenue to be collected from own source, amount to be obtained from revenue sharing, amount to be obtained from grants and amount needed to meet the budget deficit and sources thereof to the federal government through the MoFAGA by mid-January each year.

In response, the federal government, with the consultation of the National Natural Resources and Fiscal Commission (NNRFC), avails to the provincial and local governments the particulars of estimated source of fiscal equilisation grants and revenue sharing to be provided to them in the upcoming FY.

Likewise, the provincial government also provides fiscal grants in consultation with the NNRFC. After securing the grants, the local government should estimate the sources of income and set the budget limit. Then, plans and programmes of villages and towns are selected and finalised.

Following this, ward-level plans are selected and prioritised, and the budget formulation begins.

The local governments formulate their budgets on the basis of their internal revenue and grants from the federal and provincial governments. Such budget should be passed from the municipal executive ratified by the local assembly which performs as the policy-making body.

Without the budget approved by the municipal assembly, the local bodies can't collect revenue, pay salaries and execute their development plans and programmes. Further delay might impact the performance-based grants from the federal government.

Published in The Rising Nepal daily on 13 July 2025.   

Local governments’ non-cooperation hampers loan recovery: BFIs

Kathmandu, July 10

Banks, development banks, finance companies, and microfinance institutions have expressed serious concerns over the lack of cooperation from local governments during the loan recovery process.

According to Banks and Financial Institutions (BFIs), many local authorities either delay or outright refuse to provide essential documents such as right-of-way and access certifications, making it difficult for financial institutions to proceed with loan recovery within the legal framework.

Without the document for right-of-way and access certification, the banks can't transfer the ownership of the property to the new buyers.

In a joint statement issued by the Nepal Bankers’ Association, Development Bankers’ Association Nepal, Nepal Financial Institutions Association, and Nepal Microfinance Bankers’ Association, the organisations warned that such obstructions are negatively impacting the loan recovery process. This, they say, could disturb the overall financial cycle and ultimately threaten the country’s economic stability.

The institutions stressed that they have been complying fully with the policies, procedures, and legal provisions issued by Nepal Rastra Bank (NRB) regarding loan disbursement and recovery. "However, when loans are not repaid, and the financial institutions initiate auction proceedings, offices such as land revenue departments require various supporting documents—including property valuations and access approvals—that local governments are reluctant to issue," read the statement.

A case of physical assault on bankers by the creditor and ward representatives has already been registered with the police. According to bankers, all levels of BFIs are facing trouble in loan recovery due to the non-cooperation from the local offices and office bearers.

While the BFIs were facing challenges to recover loans during the anti-BFIs campaign launched by an interest group a couple of years ago, the non-cooperation has emerged as the new problem.

The BFIs further reported a disturbing rise in cases where financial sector employees face threats, psychological pressure, and even physical attacks during the recovery process.

"Such incidents undermine the integrity of the banking sector and significantly lower staff morale, while also raising serious concerns about the rule of law," they said.

According to them, there is no doubt that effective coordination between local governments and financial institutions is vital for the country’s economic development under federalism.

The associations urged all concerned authorities to take the matter seriously and facilitate local-level cooperation, ensure peace and security, and resolve these pressing challenges in accordance with the spirit of federalism.

Published in The Rising Nepal daily on 11 July 2025.   

Pakistan helps in rehabilitating children park in Budhanilkantha

Kathmandu, June 28

Pakistan-Nepal Children Park was inaugurated at Ward No. 8, Budhanilkantha Municipality, Kathmandu. The park was jointly developed by the Embassy of Pakistan in Kathmandu and Budhanilkantha Municipality.

Ambassador Abrar H Hashmi and Mayor Mitharam Adhikari attended the ceremony along with representatives from local government, civil society, and the community.

Hashmi appreciated the partnership with Budhanilkantha Municipality for the renovation of Pakistan-Nepal Children Park as well as the Embassy team for upgrading and beautification of children park play station, swings and a new walking track, a space for all ages.

“The park features upgraded play equipment, swings, and a walking track, providing a recreational space for all age groups. It was dedicated to the children of the Golfutar community as a gift from the people of Pakistan,” the Embassy said in a statement on Friday.

Speakers at the inaugural programme highlighted the park as a symbol of ongoing friendship and cooperation between Nepal and Pakistan.

This is the third park renovated by the Embassy in the past three years in partnership with local municipalities.

Scholarship distributed

A total of 195 students from 102 schools have been awarded the Ambassador of Pakistan Annual Scholarship.

The scholarship award was distributed on Thursday, amidst the 13th Ambassador of Pakistan Annual Scholarship Award Ceremony organised by the Embassy of Pakistan in Nepal.

Federal Parliament member Ek Nath Dhakal and Ambassador of Pakistan to Nepal, Abrar H Hashmi, jointly provided the amount to the students in the programme.

The Pakistan Embassy has been providing scholarships every year to students since 2013. Some 2000 students have already benefited from this programme.

Ambassador Hasmi said that every student chosen for the scholarship was awarded Rs. 10,000. "I hope this contribution can help them to ensure their right to quality education," he said after the ceremony. 

According to him, scholarships were provided to deserving Nepali students who came to the ceremony with the principals of their respective schools.

Ambassador Hashmi said that Pakistan would continue the scholarship programme and expand the cooperation at all levels of education, including Higher Secondary students in Nepal.

He also emphasised that the embassy would encourage Nepali youth in education, sports and social activities with bilateral cooperation. 

Member of Parliament Dhakal lauded Pakistan for its continued technical support in education. He stressed the need for enhancing bilateral relations between the two countries in other sectors too.

The Ambassador of Pakistan Scholarship Programme has been running regularly since 2013 and has become popular among Nepali youths over the years. 

Published in The Rising Nepal daily on 29 June 2025.  

Halesi Tuwachung prepares plan to advance energy access

Kathmandu, Feb. 15

Halesi Tuwachung Municipality has developed its first Municipal Energy Plan (MEP) to advance energy access.

This plan is designed to systematically guide the municipality in implementing energy measures over the next five years, sustainably meeting their increasing energy demands, informed Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Nepal – implementor of the project - in a press statement on Saturday.

The formal handover ceremony of the MEP took place at the Halesi Tuwachung Municipality office, where the Energy Development Sub-Committee (EDSC) of the municipality officially presented the plan to the Mayor, Bimala Rai.

The MEP was developed by the EDSC in close coordination with the local government and stakeholders, with technical support from the ‘Renewable Energy and Energy Efficiency - Green Recovery and Empowerment with Energy in Nepal (REEEP-GREEN)’ project, funded by the German Government and the European Union.

The plan includes more than 30 energy sector activities, with cost estimates derived from market assessments to ensure both feasibility and effectiveness, read the statement.

Speaking at the event, Mayor Rai highlighted several energy initiatives already undertaken by the municipality and underscored the importance of sustainable energy solutions for the community.

Executive Director of the AEPC, Nawa Raj Dhakal, reaffirmed the government's commitment to achieving 100 per cent electrification in the near future. He acknowledged that, although the estimated implementation cost of the plan is substantial, various activities could be implemented through investments from different government agencies, like AEPC, the Nepal Electricity Authority (NEA) and local consumers.

REEEP-GREEN also handed over detailed feasibility studies for two solar lift irrigation projects, designed to deliver sustainable agricultural solutions in the municipality.

Following the handover, the delegation visited several local enterprises that have already benefited from clean energy solutions supported by the municipality and the project. These included a dairy product shop, a bakery, and a leaf plate manufacturing enterprise, all of which have started or expanded operations using electric machines and equipment.

During the visit to the leaf plate enterprise, owned by a women’s cooperative, Dr. Geertrui Louwagie, Deputy Head of Cooperation at the European Union Delegation to Nepal, appreciated the cooperative’s efforts to reduce plastic waste and its role in fostering sustainable practices at the nearby sacred site of Halesi, and by its role, far beyond the municipality borders. She also highlighted the vital role of electricity in job creation and improved livelihoods, and encouraged the women to continue expanding the business development and market reach of their enterprise.

The REEEP-GREEN is a technical cooperation project co-funded by the Federal Republic of Germany (BMZ) and the European Union (EU). According to the statement, the project aims to enhance the planning and implementation conditions for renewable energy and energy efficiency measures in Nepal. It is implemented by GIZ and its partners, the Ministry of Energy, Water Resources, and Irrigation (MoEWRI) and AEPC. 

Published in The Rising Nepal daily on 16 February 2025.