Dharan endorses Rs 2.76 billion spending plan for 2026/27

ITAHARI: Following nearly a month and a half of deadlock caused by a dispute between the acting mayor and ward chairpersons, the budget of Dharan Sub-metropolitan City for the fiscal year 2026/27 has finally been approved.

A meeting of the municipal assembly held on Thursday endorsed a spending plan of Rs 2.76 billion for the current fiscal year, which began on July 17.

The annual budget represents an increase of Rs 511.14 million compared to the previous fiscal year’s outlay of Rs 2.24 billion.

The budget-making process in the sub-metropolis had stalled earlier due to a feud between Acting Mayor Aindra Bikram Begha and several ward chairs over allocation of funds for troubled local cooperatives. The impasse cleared after both sides issued self-criticisms and agreed on shared priorities.

The new budget has named urban infrastructure, education, health, drinking water, cooperative management and social development as main priority sectors. The sub-metropolis has allocated Rs 50 million specifically under the economic development heading to address crisis-ridden financial cooperatives. Overall, Rs 680 million has been earmarked for the economic development sector to fund various programs in agriculture, livestock, tourism, industry, enterprise and local employment generation.

To resolve Dharan’s long-standing water scarcity, the sub-metropolis has set aside Rs 31.1 million as a cost-sharing contribution toward the federal government’s project to supply water from the Koshi River.

Similarly, Rs 995 million has been set aside for urban planning and physical infrastructure. Planned works under this allocation include a pothole-free city initiative, the beautification of Bhanu Chowk alongside the construction of a permanent stage, and the construction of the Dharan City Hall.

The budget has allocated Rs 498.68 million for the education, youth and sports sector. The amount also includes conditional grants received from both federal and provincial governments.

Additionally, the health sector has received Rs 124.5 million. The fund includes Rs 20 million for the operation of Dharan Hospital and Rs 5 million to implement programs in collaboration with the BP Koirala Institute of Health Sciences.

The sub-metropolis has allocated Rs 260 million across its 20 wards to cover administrative, capital and program expenses. This marks an increase of Rs 50 million compared to the previous fiscal year.

Revenue Sources

To fund its expenses, the sub-metropolitan city aims to raise Rs 1.40 billion through internal revenue generation.

Similarly, it expects to receive Rs 861.9 million from federal government grants, Rs 91.64 million from provincial government grants, Rs 328.89 million from revenue sharing and Rs 10 million from the Road Board.

It plans to carry over Rs 70 million from the previous year’s cash balance.