KATHMANDU: The Kathmandu Metropolitan City (KMC), Nepal’s largest local government body, is struggling to finalize its annual budget for the fiscal year 2025/26.
As per the Local Government Operation Act, local governments must present their budget by June 24, but by Monday, KMC had neither convened its municipal assembly nor held executive or budget committee meetings.
The delay stems from a prolonged dispute between Mayor Balen Shah and Chief Administrative Officer Saroj Guragain, along with poor coordination between the mayor and Deputy Mayor Sunita Dangol.
These internal conflicts have paralyzed formal budget processes, including the crucial Pre-Budget Discussion and the Resource and Ceiling Determination Committee meeting.
While elected representatives have failed to move the process forward, city staff say they have already prepared a draft budget of approximately Rs 40 billion, similar in size to the previous year. The final budget, however, remains undecided, with key approvals pending.
Officials warn that if the budget isn’t approved in time, it could severely affect infrastructure projects, essential services, and employee salaries.
Despite the uncertainty, municipal officials remain hopeful that an agreement among the leadership will be reached at the last moment to avert a crisis.
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