ITAHARI: Itahari and Dharan sub-metropolitan cities in Koshi Province have failed to bring their budgets on time. The delay has not only raised questions about financial discipline but also affected service delivery and shaken public confidence in local governments.
Under the Local Government Operations Act, every local unit must pass its policies, programs and budget for the upcoming fiscal year by mid-July. However, due to political disagreements and a lack of coordination among municipal executive members, both sub-metropolises have entered a budget holiday. In Itahari, although a budget was presented, it has not been approved and therefore cannot be implemented. Dharan, on the other hand, has not prepared and tabled its budget.
In Itahari, differences between Mayor Hemkarna Paudel, who is from the Nepali Congress (NC) and executive members from the CPN-UML have been the main reason for the stalemate. Interestingly, the two parties are coalition partners in the federal government.
The 16th Municipal Assembly meeting on July 16 was adjourned after members protested that the budget was being pushed forward without the required annexes (detailed schedules).
Deputy Mayor Sangita Chaudhary said it was natural for municipal executive members to object when the budget is presented without specifying plans, costs and tax details. “Without such details, there is a risk of budget misuse.
The sub-metropolis has proposed a budget of Rs 2.55 billion for the fiscal year 2025/26. However, neither the policies and programs nor the budget have been passed.
According to the budget presented by Chaudhary on June 24, the estimated budget allocation for recurrent expenditure is Rs 1.04 billion, while it Rs 90 million for debt repayment and Rs 1.30 billion for capital expenditure. The total allocation for 2025/26 is lower by more than Rs 1 billion compared to 2024/25’s budget of Rs 3.57 billion.
In Dharan, internal disputes between independent Mayor Harka Sampang and Deputy Mayor Indra Bikram Beg over labor donation programs have not been resolved yet. Because of this, the sub-metropolis has not been able to set even the budget ceiling for the new fiscal year.
Ward-17 Chairperson Surya Bahadur Bhattarai (Manoj), who is also the spokesperson of the sub-metropolis, said final discussions on the budget are underway. He added that the budget could be finalized by mid-August.
Bhattari also claimed that there is currently no dispute within the sub-metropolis regarding the budget. “The budget is expected to exceed Rs 2 billion. However, exact figures are yet to be determined,” he added.
The absence of an approved budget in both cities has affected payments for development projects, staff salaries, regular services and consumer committee activities.
Political analysts say factionalism and party ego are taking precedence over public interest. They argue that the inability of the two sub-metropolitan leaders to deliver the budget reflects a lack of capacity, especially when most other local governments in the province, including Biratnagar Metropolitan City, have already begun implementing their budgets.
