Sunday, December 21st, 2025

Metropolitan cities rush to finalize budgets by deadline, but Kathmandu remains uncertain



KATHMANDU: As per the constitutional provision, all 753 local governments in Nepal must conclude their budget sessions for the upcoming fiscal year by the end of Asar 10 (June 24).

While most metropolitan cities have either concluded or are in the process of presenting their budgets, Kathmandu Metropolitan City remains in limbo due to internal conflict.

Most cities on track, but Kathmandu stalls

So far, three metropolitan cities—Pokhara, Bharatpur, and Birgunj—have officially presented their budgets for the fiscal year 2025/26.

Two others—Lalitpur and Biratnagar—are conducting their budget sessions today. However, Kathmandu, the largest and capital metropolis, has yet to even convene a board meeting to begin the budget process, making the status of its fiscal planning uncertain.

Pokhara announces Rs 8.35 billion budget

Pokhara Metropolitan City has announced a budget of Rs 8.35 billion for the upcoming fiscal year. The budget was presented on Sunday by Deputy Mayor Manju Devi Gurung during the 17th municipal assembly.

The city anticipates receiving Rs 3.13 billion in conditional federal grants, Rs 330.8 million in federal revenue sharing, Rs 528.7 million in federal equalization grants, and Rs 81.5 million in provincial equalization grants. Pokhara also projects Rs 5.22 billion in internal revenue, Rs 1.01 billion from local revenue sharing, and Rs 428 million from provincial revenue sharing.

Bharatpur presents Rs 5.19 billion budget

Bharatpur Metropolitan City unveiled a budget of Rs 5.19 billion for fiscal year 2025/26. The announcement was made by Deputy Mayor Chitrasen Adhikari at the city’s 17th municipal assembly.

The city expects to raise Rs 1.80 billion from internal income and Rs 2.15 billion from intergovernmental financial transfers. It also anticipates Rs 319.1 million from federal revenue sharing and Rs 140.4 million from provincial revenue sharing. Additional projected revenue includes Rs 500 million through public participation, Rs 700 million from bank reserves, and Rs 30 million from the Road Board of Nepal.

Birgunj allocates Rs 3.22 billion budget

Birgunj Metropolitan City presented a budget of Rs 3.22 billion during its 17th municipal assembly on Monday. Deputy Mayor Imtiaz Alam introduced the fiscal plan, outlining allocations of Rs 2.26 billion for recurrent expenditure, Rs 923.4 million for capital expenditure, and Rs 36.4 million for financial management.

To support these expenditures, the city aims to collect Rs 1.15 billion from internal revenue and Rs 1.37 billion from federal intergovernmental transfers.

Other revenue streams include Rs 237.8 million from federal revenue sharing, Rs 50 million from provincial intergovernmental transfers, Rs 16.7 million from provincial revenue sharing, Rs 250 million from land registration fees, and Rs 150 million from existing cash reserves. This marks a notable increase from Birgunj’s current fiscal year allocation of Rs 2.89 billion.

All eyes on Kathmandu

As the constitutional deadline nears its end, all attention remains on Kathmandu Metropolitan City. Internal disputes have so far prevented even the basic step of convening a board meeting to initiate the budget process. If the city fails to pass its budget by the end of the day, it could face constitutional and administrative consequences.

Publish Date : 24 June 2025 15:10 PM

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