Kathmandu

KMC misses budget deadline amid internal dispute

Internal rift between mayor and chief administrative officer stalls municipal assembly and budget proceedings

By THT Online

Photo: Sandeep Sen/THT

KATHMANDU, JUNE 25

Kathmandu Metropolitan City (KMC) has failed to present its annual budget within the legally mandated deadline of Asar 10, even as most local governments across the country met the requirement.

According to the Local Government Operations Act and the Intergovernmental Financial Management Act, local units are required to table their budget for the upcoming fiscal year by Asar 10. While many local governments presented their budgets on time-some even earlier-delays were reported in a few due to internal disputes or technical issues.

Among Nepal's six metropolitan cities, KMC is the only one that has not presented its budget. In contrast, Biratnagar, Birgunj, Lalitpur, Bharatpur, and Pokhara have already announced their annual fiscal plans. Lalitpur Metropolitan City (LMC) had presented a budget of Rs 7.47 billion for the fiscal year 2025/26 earlier today.

The delay has drawn public interest, as KMC manages a larger budget than several federal ministries. The city's municipal assembly has not convened for a long time, and KMC has not released any official statement explaining the hold-up.

According to reports, a standoff between Mayor Balendra Shah and the Chief Administrative Officer appointed by the federal government is obstructing the process. It is also reported that there have been no discussions within KMC regarding policies, programmes, or the budget. Similar issues have been observed in a few other local levels, where policy and programme presentations have also been delayed.