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🇳🇵 Nepal /Elections & Politics

Budget process stalls in four provinces as rifts emerge within ruling coalitions

From Kathmandu Post · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Budget deliberations have stalled in four provincial assemblies due to ruling party lawmakers opposing government spending plans.
  • The deadlock is most pronounced in Sudurpaschim province, where the UML party refuses to endorse the budget, citing procedural and technical flaws.
  • Discussions between coalition partners have yet to yield an agreement, delaying budget passage for the new fiscal year.

Budget deliberations have ground to a halt in four provincial assemblies across Nepal, exposing deep rifts within ruling coalitions and jeopardizing the timely passage of budgets for the new fiscal year. Lawmakers from ruling parties are opposing spending plans introduced by their own governments, leading to significant delays.

There is still time for discussions. We will pass the budget before the end of the fiscal year.

— Kamal Bahadur ShahChief Minister Shah acknowledged technical errors in the budget and expressed confidence in passing it.

The most acute deadlock is in Sudurpaschim province, where the Provincial Assembly has been largely inactive for two weeks. The coalition government, led by the Nepali Congress with the CPN-UML as a partner, faces opposition from the UML. The party refuses to endorse the budget, citing serious procedural and technical flaws, and plans to register amendment proposals.

Chief Minister Kamal Bahadur Shah acknowledged the budget contains technical errors and stated that discussions are ongoing within the coalition to address them, expressing confidence that the budget would pass before the fiscal year ends. However, UML leaders dispute this, claiming no substantive discussions have occurred regarding assembly meetings or budget deliberations. They express widespread dissatisfaction with the budget.

There is widespread dissatisfaction with the budget.

— Santosh Kumari Sharma ThapaDeputy leader of the UML parliamentary party, disputing claims of progress in discussions.

The UML accuses the Nepali Congress of monopolizing the budget preparation process, despite sharing power. While the UML holds key ministries, the Congress controls the chief minister's office and other significant portfolios. The UML had previously threatened to leave the coalition over budget disagreements but ultimately remained. The Finance Minister presented the budget shortly before midnight on June 15, after which the UML decided to seek amendments, alleging the budget was incomplete, violated appropriation principles, lacked ministry-wise allocations, and ignored project selection criteria. The party also noted inconsistencies in budget figures.

The ruling parties themselves have not reached a consensus; discussions might be underway.

— Dev Bahadur BogatiSecretary of the Provincial Assembly Secretariat, on the lack of agreement between coalition partners.
DistantNews Editorial

Originally published by Kathmandu Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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