Budget disputes stall provincial assemblies

KATHMANDU, July 1: Even as the ruling Rastriya Swatantra Party (RSP) continues to question the relevance of Nepal's provincial system, provincial governments themselves have become mired in internal disputes over their annual budgets.

All seven provincial governments are led by established political parties, primarily the Nepali Congress and the CPN-UML. Failure to build consensus over budget allocations has delayed parliamentary proceedings in several provinces.

In Koshi Province, lawmakers have expressed strong dissatisfaction with the provincial budget. Chief Minister and senior leaders are trying to address their concerns and resume assembly proceedings. Assembly meetings have been postponed repeatedly. Provincial Assembly Secretary Sudarshan Khadka said the 16th meeting, originally scheduled for June 25 and June 30, was rescheduled at the government's request after it could not be held as planned.

In Bagmati Province, the budget has triggered infighting within the ruling Nepali Congress. The budget presented by the government led by Chief Minister Indra Bahadur Baniya has split the party into rival camps. A faction led by Nepali Congress lawmaker and former chief minister Bahadur Singh Lama has opposed the budget and skipped assembly proceedings to hold internal discussions in Kathmandu.

A similar deadlock has emerged in Lumbini Province, where the budget has remained stuck in the assembly because of lawmakers' objections. Although the budget must be debated and endorsed by the assembly, no discussion has taken place even 15 days after it was tabled, raising uncertainty over its approval before the new fiscal year. Lawmakers have accused the government of lacking transparency in budget allocations, preventing the assembly from convening.

The strongest criticism has come from lawmakers of the ruling UML itself, who say the budget prepared by their own party led government is ineffective and needs revision. They have been urging Chief Minister Chet Narayan Acharya to amend the budget, with some even calling for it to be rewritten. Government sources said the chief minister is exploring ways to revise the document before implementation.

In Karnali Province, budget related tensions also continue. After Chief Minister Yam Lal Kandel responded to lawmakers' concerns, opposition Chief Whip Krishna Bahadur GC accused the government of failing to commit to correcting flaws in the budget. He objected to what he described as excessive funding for institutions named after political leaders, projects linked to individuals, and religious sites, including temples and clan deities. The opposition has obstructed assembly proceedings until the government pledges to amend those allocations.

In Sudurpashchim Province, internal disputes within the ruling coalition have delayed the start of budget discussions altogether.