KATHMANDU, June 15: After the country adopted federalism, the general public was expecting services of Kathmandu-based Singha Durbar to reach each and every village. There was a general expectation and belief that the development model would change. The political parties in their election manifestos and speeches also announced that Singha Durbar had reached villages. But the reality is different from the commitment and speeches of the leaders.
Critics say that the budget for the upcoming fiscal year 2023/24 prepared by the federal government has mocked federalism. Even though the budget has adopted some good measures in terms of expenditure reduction, it has made plans for the ministries similar to those made by the wards. The Ministry of Water Supply has allocated a budget of Rs 100,000 for the water supply project of Boharaba Dalit settlement of Dhanusha. The federal government has also allocated a budget of Rs 100,000 for the Pashupati Nagar drinking water scheme in Mahottari. Not only for drinking water projects, a budget of Rs 200,000 has been arranged for the Maseri river bridge in Nuwakot under the strategic road bridge construction. Hundreds of plans worth Rs 500,000 are to be implemented by the province in the name of the Alternative Highway Program.
Bhim Dhungana, president of the Nepal Municipality Association, said that the central mentality has planned to weaken federalism by reducing the powers of the local government. "If the federal government is going to choose plans of one/ two hundred thousand rupees, then what is the ward president for," Dhungana said, "The budget was brought to weaken federalism." Dhungana said that the federal government's ministers and parliamentarians were involved in the retail scheme by curtailing the powers of the local government against the spirit of the constitution.
Book review: Analyzing political economy of federalism in Nepal
In the budget announced by the government for the fiscal year 2023/24, there are hundreds of schemes worth one hundred thousand, two hundred thousand, five hundred thousand, a million rupees for road infrastructure, urban development, irrigation, and drinking water.
In accordance with the principles of federalism, the authority and budget should have been decentralized. Even though it is believed that there is a balanced development in a democratic system, federalism expert Dr Khimlal Devkota said, "If the central government participates in the selection of petty schemes, then what is the point of the local government." Devkota said that the federal government went in the opposite direction.
According to the National Rural Municipality and Nepal Municipality Association, the budget allocated for the local level is very low. Dhungana, president of the Nepal Municipality Association, said that although 30 to 40 percent of the budget should be sent to the local government for planning and implementation, only 5 percent of the budget was sent. "A local government that is directly connected to the people can address the local needs, wishes and aspirations of the people," Dhungana said, “85 percent of the demand is connected to the local government. But the center has sent a very low budget to be allocated and implemented from the local level.” He said that the budget for financial equalization and revenue sharing has been cut.
Laxmi Pandey, president of the National Federation of Rural Municipalities, said that the federal government, by making plans of one-two hundred thousand rupees, has acted contrary to the spirit of federalism, when even the local level asks not to make a plan of five hundred thousand rupees budget. "When the budget is made to weaken the local level, rights have been interfered upon," said Pandey, "The federal government has allocated the budget by breaching its jurisdiction." She said that it was not possible to implement development plans by sending equalization grants to 753 local levels. “Balanced development cannot be achieved with the budget planned from Singha Durbar,” she said, “Imposing plans from the center is absolutely wrong.”
