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🇳🇵 Nepal /Elections & Politics

Nepal province faces budget crisis as ruling coalition collapses

From Kathmandu Post · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • Sudurpashchim Province faces a budget crisis and political instability after the CPN-UML withdrew support from Chief Minister Kamal Bahadur Shah's coalition.
  • Shah has lost his majority and must seek a vote of confidence within 30 days, but he plans to test his majority on the assembly floor instead of resigning.
  • The political deadlock raises concerns about the province's ability to function without an endorsed budget, with the opposition NCP demanding a new administration.

Sudurpashchim Province is mired in a dual crisis, struggling with both a budget deadlock and a collapse of its ruling coalition. Chief Minister Kamal Bahadur Shah's government lost its majority when the CPN-UML party withdrew support, leaving the province in political limbo.

There is no need to rush. The constitution provides a 30-day window. Talks are under way among the top leaders at the centre, and I believe a solution will emerge.

— Kamal Bahadur ShahChief Minister Shah's statement on the political situation and the constitutional deadline for a confidence vote.

The immediate fallout is the failure to endorse the budget for the new fiscal year, raising concerns about how the province will operate. The political uncertainty has intensified, with the opposition Nepali Communist Party (NCP) demanding Shah's resignation to make way for a new government.

However, Shah has stated he will not step down immediately, opting instead to seek a vote of confidence in the Provincial Assembly within the constitutionally mandated 30-day period. He indicated that discussions among senior leaders in Kathmandu might yield a solution. "Rather than resigning, I will test my majority on the floor of the assembly in line with the constitution," Shah told the Post, adding that provincial-level discussions are also underway.

Rather than resigning, I will test my majority on the floor of the assembly in line with the constitution. We are also holding discussions with various political parties in the province.

— Kamal Bahadur ShahChief Minister Shah's plan to seek a vote of confidence instead of resigning.

The collapse of the Nepali Congress-led coalition, which previously included the UML, has shifted the balance of power. The NCP, holding 20 seats, now becomes a crucial player. Any new government would likely require an alliance between at least two of the three major parties: the NCP, Congress, and UML. The NCP has stated it will not support a three-party coalition and insists Shah must resign before they consider any new administration.

Since the chief minister has lost his majority, our parliamentary party has decided that he should resign to pave the way for a new government. We have already resolved to take the initiative to form a government under our leadership.

— Khag Raj BhattaThe leader of the NCP parliamentary party's demand for Shah's resignation.
DistantNews Editorial

Originally published by Kathmandu Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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