Local governments in Chitwan face declining revenue

CHITWAN, Oct 9: Local governments in Chitwan are experiencing a steady decline in internal revenue. The seven local bodies in the region have reported a continuous drop over the past three years.

At the annual progress review meeting for fiscal year 2023/24, organized by the District Coordination Committee Chitwan, it was revealed that the economic downturn following the pandemic has significantly impacted the income of these local governments.

Internal revenue now accounts for only 29 percent of the total budget across the seven local bodies. Out of the total budget of Rs 8.75 billion, just Rs 2.55 billion has been generated internally. Despite this, the financial progress of the municipalities stands at an average of 70 percent.

Chitwan district comprises five municipalities, one metropolitan city, and one rural municipality. Bharatpur Metropolitan City leads in internal revenue, generating Rs 1.37 billion. With a total budget of Rs 3.80 billion, the city's financial progress stands at 50 percent, according to Jagannath Aryal, Deputy Director of the Financial Administration and Revenue Management Division. The internal revenue of other municipalities remains significantly lower.

Khairahani Municipality follows Bharatpur in internal revenue, collecting Rs 161 million against a total budget of Rs 1.16 billion. Chief Administrative Officer Bishnu Prasad Sapkota reported that the municipality achieved 85 percent financial progress. In the fiscal year 2022/23, Khairahani generated Rs 173.1 million in internal revenue, down from Rs 207.9 million the previous year.

Madi Municipality recorded internal revenue of Rs 155.9 million against a budget of Rs 595.12 million, with financial progress at 77.7 percent. Kalika Municipality's internal revenue stands at Rs 151.6 million out of a budget of Rs 863.6 million, which includes federal and provincial grants. Its financial progress is 77 percent.

Despite Ratnanagar Municipality’s higher level of urbanization, its internal revenue is lower than that of Khairahani, Kalika, and Madi municipalities. Chief Administrative Officer Sukdev Lamsal reported that Ratnanagar collected Rs 123.6 million in revenue. The municipality's revenue sources include unified property tax, land tax, house rent, business tax, and taxes on herbal products, vehicles, advertisements, and entertainment. Out of a budget of Rs 1.224 billion, Ratnanagar achieved 76 percent financial progress.

Rapti Municipality has a total budget of Rs 1.47 billion, with internal revenue amounting to just Rs 33.3 million. Ichhakamana, the district’s only rural municipality, generated Rs 29.4 million in internal revenue, with a total budget of Rs 674.19 million.

During the annual review program held in Bharatpur on Sunday, the performance of the seven local levels and ten district offices was evaluated. Speaking at the event, Krishna Prasad Silwal, Minister for Forest and Environment of Bagmati Province, stressed the importance of aligning government efforts with public sentiment. He emphasized the vital role of employees and elected representatives in ensuring good governance.

"We are not corrupt, and we will not allow corruption," Silwal stated. "Political workers should not be given a moment of respite." As the MP for Chitwan Constituency No. 2 (b), Silwal underscored the need to build a prosperous Chitwan.

At the program, political party representatives highlighted the importance of focusing on budget implementation, noting that bureaucratic processes often harm public welfare. They called for more streamlined services for citizens. Mayors and deputy mayors also pointed out that a lack of coordination among the three tiers of government has led to overlapping plans.

In addition to reviewing the performance of the local governments, the program assessed the work of the Agriculture Development Office, the Prime Minister's Agriculture Modernization Project Implementation Unit in Chitwan, the Division Forest Office in Bharatpur, the Infrastructure Development Office, the President Chure Conservation Implementation Unit in Chitwan, the Fisheries Development Center in Bhandara, and the Livestock Development Office in Bharatpur.