Key Takeaways:

• CM Shah resigned after UML withdrew support over FY 2083/84 budget dispute
• Province entered new fiscal year without an approved budget, halting spending
• Shah accused UML of creating instability by amending coalition-prepared budget
• NCP and UML poised to form new government, but budget passage remains urgent

DHANGADHI, AUGUST 14 Sudurpaschim Province has moved closer to ending its prolonged political uncertainty after Chief Minister Kamal Bahadur Shah resigned on Thursday, 30 days after the CPN-UML withdrew support from his government over a dispute surrounding the provincial budget. Shah announced his resignation while addressing the Provincial Assembly and shortly afterwards submitted his resignation to Province Chief Nazir Miya at his office. The resignation opens the way for the formation of a new provincial government under the new political equation between the Nepal Communist Party (NCP) and CPN-UML. The NCP is reportedly set to lead the next government in Sudurpaschim. Shah was pushed into a minority after the UML withdrew its support amid escalating differences over the FY 2083/84 budget. The province entered the new fiscal year without a budget after the dispute prevented its passage through the assembly. Addressing the assembly, Shah accused the UML of creating instability by proposing expenditure cuts to a budget in whose preparation it had participated as a coalition partner. 'Bringing an amendment proposal to a budget that you yourself prepared is an attack on the hungry people of Sudurpaschim. It was an attempt to push the province towards instability,' Shah said. Although the provincial government has been able to collect revenue, the absence of an approved budget has deprived it of the legal basis to make expenditures. Development projects and regular government programmes have consequently been affected. Shah's resignation is expected to end the immediate political deadlock, but the budget crisis will remain a major challenge for the incoming government. The new administration will have to restore political stability while also securing passage of a new budget through the Provincial Assembly to end the province's prolonged spending paralysis.