KATHMANDU: As local governments across Nepal begin rolling out their budgets for the new fiscal year 2025/26, the Kathmandu Metropolitan City (KMC)—the nation’s largest and most resourceful municipality—has failed to present its own, raising serious concerns over administrative paralysis and political deadlock.
The primary reason: Mayor Balen Shah’s ongoing refusal to sit in the same room as Chief Administrative Officer (CAO) Saroj Ghimire, whom he has accused of corruption.
Despite internal appeals and repeated requests from elected municipal officials, the budget deadline of June 24 passed without a meeting of the executive body or the municipal assembly.
This has left a critical question hanging over the capital city: When will the Kathmandu Metropolitan City budget be announced?
At present, there is no official date or indication from the mayor’s office, and insiders suggest the deadlock could persist if the federal government doesn’t intervene or if the mayor doesn’t shift his stance.
According to KMC spokesperson Nabin Manandhar, “The budget delay is purely a result of the mayor’s inability to coordinate. If he had worked with the deputy mayor and ward chairs, this wouldn’t have happened—even with the current CAO.”
Mayor Shah has made it clear he does not trust Ghimire, accusing him of approving illegal modifications to the Kathmandu Tower. However, no formal charges have been filed against Ghimire, and a committee formed by the mayor himself was unable to establish wrongdoing.
Despite the public feud, Shah has been signing off on dozens of files submitted by Ghimire. As of late Baisakh, he had approved 18 documents from the CAO’s desk, highlighting a contradiction between his rhetoric and administrative actions.
The failure to present a timely budget means KMC cannot legally authorize new spending or proceed with planned development works. Municipal officials fear that if the impasse is not resolved soon, critical infrastructure projects and service delivery could be severely disrupted.
Observers note that Mayor Shah’s rigid stance has politically cornered him—especially after previous symbolic actions like padlocking the CAO’s office and immobilizing his government vehicle. Meanwhile, the federal government, led by Prime Minister KP Sharma Oli, has refused to replace Ghimire, reportedly due to Shah’s outspoken criticism of federal leadership.
With neither side budging, the people of Kathmandu are left waiting for clarity—and a budget. But until Mayor Shah either compromises or the federal government intervenes, the answer to “When will the Kathmandu budget come out?” remains uncertain.
Comment