Nepal | June 07, 2020

Finance ministry still to finalise grant amount for 744 local bodies

BUDGET 2017-18

Himalayan News Service
Share Now:

Budget. Illustration: Ratna Sagar Shrestha/THT

Kathmandu, April 29

The budget formulation process for next fiscal 2017-18 has yet to gather momentum, though only a month remains for the government to submit the budget to the Parliament as per the provision of the Constitution.

As the Election Commission (EC) has granted permission to the government to bring budget on time without any populist programme to influence the local polls, the government has to present the budget within a month if there is no amendment in the Constitution to defer the budget presentation date.

Budget formulation process has stalled as the line ministries have been delaying in sending local level programmes to the Ministry of Finance (MoF). As per the programmes submitted by the line ministries in various sectors like education, health, irrigation, roads and drinking water, among others, the MoF will allocate the grant to the 744 local bodies that came into operation very recently.

The MoF will provide grant directly to the local bodies based on their programmes, according to Finance Secretary Shanta Raj Subedi. “Once the ministries submit the programmes with required resources for next fiscal, then we will be able to give final shape to next fiscal’s budget.”

The local bodies are responsible to execute the programmes on their own as they will receive grant amount directly from MoF. The grant amount will be decided as per the development need of the local bodies — metropolitan, sub-metropolitan cities, municipalities and rural municipalities — according to MoF officials.

The MoF has said that the budget will not allocate grant for provinces this year because the provincial structure is yet to be set up. As the government has to conclude provincial and central level election by January 21, 2018, the provincial structures are also expected to be set up after the local polls, but the MoF will not allocate resources for the provinces in next fiscal, according to Subedi.

“As the Constitution has envisioned an independent commission for the distribution of revenue and utilisation of natural resources, the MoF is going to fix the grant amount for 744 local bodies based on their requirement to execute the projects submitted by them through the ministries.”

The Natural Resources and Financial Commission would be responsible to distribute resources to the local bodies, provinces and centre. However, the bill for the Natural Resources and Financial Commission is yet to be tabled at the Parliament.


A version of this article appears in print on April 30, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Supreme Court of Nepal

SC orders release of illegally-detained man

KATHMANDU, JUNE 5 The Supreme Court today rebuked District Administration Office, Siraha, and others for unlawfully detaining Chakra Bahadur Khatri, a resident of Khotang district, for more than a year. The court asked the National Human Rights Commission to secure the release of the man and w Read More...

Trump orders big US troop cut in Germany, official says

BANGOR, MAINE: US President Donald Trump has ordered the military to remove 9,500 troops from Germany, a senior US official said on Friday, a move likely to raise concerns in Europe about the US commitment to the continent. The move would reduce US troops numbers in Germany to 25,000, from the 3 Read More...

15 yrs on, Bandarmudhe blast victims still await justice

CHITWAN, JUNE 5 Fifteen years have passed since the infamous Bandarmudhe bomb blast, but the victims of the incident are still awaiting justice. The bomb blast carried out by the then rebelling CPN Maoist on a passenger bus at Madi of southern Chitwan had taken the lives of 38 people, leaving Read More...

michael jordan

Jordan giving $100 million for racial equality, justice

CHARLOTTE: Michael Jordan and the Jordan Brand are giving $100 million to organizations dedicated to promoting racial equality and social justice. In a joint statement Friday on social media, Jordan and the Jordan Brand said money will be paid over 10 years with the goal of “ensuring racial equ Read More...

Buffalo officers suspended in shoving of 75-year-old man

BUFFALO: Dozens of Buffalo police officers stepped down from the department's crowd control unit Friday, objecting to the suspensions of two fellow officers in the shoving of a 75-year-old protester who fell and cracked his head. Prosecutors were investigating the encounter captured by a TV crew Read More...

Kylie Jenner tops Forbes highest paid celebs list a week after Forbes' scathing report of her not being a billionaire

LOS ANGELES: After making headlines a week ago in a Forbes report for not being a billionaire, Kylie Jenner on June 4 was ranked at Number 1 by Forbes in its annual world's highest paid celebrities list. She was followed by musician Kanye West, who is married to her half-sister Kim Kadarshian Read More...

Swab collection halted for five days in Sudurpaschim

DHANGADI, JUNE 5 Sudurpaschim Province has halted collection of throat swab samples for five days. Province Health Directorate Office Dhangadi said it had stopped collecting swab samples as more than 1,000 swabs were on hold and left to be tested. “We have more than 1,000 swab samples yet Read More...

Hollywood star Leonardo DiCaprio dedicated to ending disenfranchisement of Black America

KATHMANDU: Joining a growing list of Hollywood celebrities donating to organisations working for equal rights during the 'Black Lives Matter' protests in the US, actor Leonardo DiCaprio too has announced donations while urging others to take action. Taking to Twitter on June 5, the Once Upon A T Read More...