Nepal provinces continue billions in lawmaker-chosen projects despite court ban

Provincial governments across Nepal are set to allocate billions of rupees for projects selected by lawmakers, a practice that persists despite a Supreme Court ruling against the Constituency Development Fund. The apex court had halted the program due to widespread misuse, but several provinces are finding ways to allow lawmakers to influence budget allocations.

Sudurpashchim, Karnali, Lumbini, and Bagmati provinces are among those preparing to include lawmaker-chosen projects in their budgets for the fiscal year 2026-27. In Sudurpashchim, the government plans to earmark Rs2.23 billion, with directly elected lawmakers receiving Rs50 million each and proportional representation lawmakers getting Rs30 million. Lawmakers are instructed to submit lists of projects within these allocations.

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Members are free to propose projects of their choice. We have been asked to submit projects of of to Rs50 million.

This practice has drawn criticism, with opponents arguing that lawmakers tend to direct funds towards projects that benefit their supporters and reinforce political patronage. "Lawmakers tend to push projects aimed at their own supporters," said Prabhuram Chaudhary, a resident of Bhajani. "It is often unclear how projects are selected or who truly benefits. It feels like decisions are made through political connections."

Provincial lawmakers, however, have argued that they lack significant authority over development planning and budget allocation despite being elected representatives. The Ministry of Economic Affairs and the Ministry of Physical Infrastructure Development in Sudurpashchim temporarily suspended public consultations ahead of budget preparation amid mounting pressure.

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Lawmakers tend to push projects aimed at their own supporters. It is often unclear how projects are selected or who truly benefits. It feels like decisions are made through political connections.