Clarification sought for delay in endorsing budget


The Ministry of Federal Affairs and General Administration has sought clarification from 35 local levels for their failure to bring their annual budget and programme for fiscal 2020-21 even after four months into the new fiscal.

The local levels failing to announce their budget and programme, include 18 rural municipalities and 17 municipalities.

The country has 753 local levels. As per Section 71 of the Local Government Operation Act-2017, deputy mayor, vice-chair or any member designated by the executive of a local level shall present the revenue and budget estimates for the next fiscal year to the assembly within Asadh 10 of each year, after having it approved by the executive. The annual budget and programme should include detail of income and expenditure of the last fiscal and plan programmes, and estimated income and expenditure for the coming fiscal.

It requires the assembly to complete discussion on budget and programmes within 15 days before sending it to the executive, along with suggestion for necessary amendment as may be required.

It is against the law to generate income and spend by local levels without submitting programme and budget and getting endorsed by the assembly.

Despite clear provision stipulated in the law, as many as 35 local levels have yet to enter the statement of their budget in the online reporting system of the MoFAGA.

“Therefore, those local levels have been asked to clarify as to why they failed to abide by the law. They have been requested to pass their budget and programme from the concerned assembly as soon as possible,” read a notice issued by Joint Secretary Basanta Adhikari on Sunday.