In a surprising turn of events, Kathmandu — Nepal’s capital and most populated city — has failed to announce its budget for the fiscal year 2082/83 on time. This is despite a clear legal mandate requiring all local governments to present their budgets by Asar 10 (around the end of June).
As per Nepal’s Local Government Operation Act, 2074, and Intergovernmental Fiscal Arrangement Act, 2074, local units must finalize and publish their budget before the deadline. But internal political tensions have held back Kathmandu Metropolitan City (KMC) this year.
Sources reveal that a conflict between Mayor Balen Shah and Chief Administrative Officer Saroj Guragai has stalled the entire process. Due to this dispute, not even the preliminary budget ceiling meeting could take place. This means Kathmandu is now in violation of national law — a rare and concerning development for the country’s leading metro.
While the capital city remains stuck in administrative chaos, the five other metropolitan cities of Nepal have not only met the legal deadline but have also released complete budget plans for the year ahead.
Pokhara Leads with Biggest Budget
Pokhara Metropolitan City took the lead with a massive budget of NPR 8.35 billion. Out of this, NPR 3.13 billion will come from federal support, while NPR 5.22 billion will be raised internally. The city plans to invest NPR 2.33 billion in infrastructure and NPR 1 billion at the ward level.
Lalitpur Sets a Strong Capital Plan
Lalitpur announced a budget of NPR 7.46 billion, with a focus on long-term development. NPR 2.78 billion is set aside for regular expenses and NPR 4.67 billion for capital projects. The city will rely on a mix of federal, provincial, and internal revenues.
Bharatpur Balances Funding Sources
Bharatpur Metropolitan City’s budget totals NPR 5.19 billion, supported by internal income, government transfers, and bank reserves. Local community involvement and road board funds are also expected to contribute.
Biratnagar Focuses on Tax Revenue
With a budget of NPR 4.40 billion, Biratnagar is banking on taxes like VAT, vehicle tax, and property registration to generate internal income, alongside provincial and federal grants.
Birgunj Publishes the Smallest Budget
Birgunj Metropolitan City came up with the smallest budget — NPR 3.22 billion — but still managed to stay within the legal timeframe. Most of its funds will cover ongoing services and operations.
