Five local units have not brought their fiscal budget yet

KATHMANDU: While the second quarter of the Fiscal Year 2022/23 is about to end, five local units have not been able to bring their fiscal budget.

Four of these local units are in Madhesh Province, while one is in Lumbini Province. Nagarain and Kamala municipalities of Dhanusha, Baudhimai Municipality of Rautahat and Bishnu Rural Municipality of Sarlahi have not been able to bring income and expenditure programs for the current fiscal year which began in mid-July. Similarly, Duduwa Rural Municipality of Banke has also not been able to bring its budget.

Development activities in these local units have come to a standstill because of their failure to bring their fiscal budget in time. Staff members have not been able to get salaries, while day to day operation of these local units has been affected.

According to the Ministry of Federal Affairs and General Administration, the annual budget of eight local units has not been uploaded into its system. Though the ministry’s system doesn’t have fiscal budget of Aurahi and Karjanha rural municipalities of Siraha and Yamunamai Rural Municipality of Rautahat, they have already brought their budget for the current fiscal year.

As per Intergovernmental Fiscal Management Act, 2017, local units must bring their fiscal budget about three weeks before the fiscal year begins in mid-July.

Local units cannot spend even a penny without bringing the fiscal budget. District Treasury Controller Office prevents local units, which have not brought fiscal budget, from making spending.