KATHMANDU, July 1: The Ministry of Land Management, Cooperatives, Federal Affairs and General Administration has sought explanations from 23 local governments for failing to present their annual policies, programmes and budgets for fiscal year 2026/27 within the legally mandated deadline.
In separate letters, the ministry directed the concerned rural municipalities and municipalities to submit, within three days, details on the current status of their budget preparation process and the reasons for the delay.
The ministry cited provisions of the Local Government Operation Act, 2017, and the Intergovernmental Fiscal Arrangement Act, 2017, which require local governments to have their annual revenue and expenditure estimates approved by the executive and presented to the local assembly by June 24, with final approval to be completed by mid-July.
RSP seeks explanation from General Secretary Dhakal
According to the ministry, data entered into its online portal and reports received from local governments show that some local bodies have yet to present their budgets for the upcoming fiscal year within the timeframe prescribed by law.
The ministry has asked the local governments to clarify the stage of the budget formulation process, explain why the budget could not be tabled on time, and indicate whether any additional coordination or facilitation from the ministry is required.
It has also requested them to submit the schedule of upcoming assembly meetings to ensure that the budgets can be endorsed by the end of the Nepali fiscal year.
The ministry said the move is aimed at ensuring timely completion of the budget formulation process and full compliance with legal provisions governing local governments.
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