Budgets of All Six Metropolitan Cities Announced, Prioritizing Infrastructure and Good Governance

June 24, Kathmandu – In accordance with legal provisions, all local governments across the country must announce their budget for the upcoming fiscal year 2083/84 by June 24. Accordingly, six metropolitan cities have released their budgets for the coming year.

The metropolitan cities have introduced new budgets prioritizing good governance and infrastructure development. Kathmandu Metropolitan City has the largest budget in Nepal. The combined budgets of the other five metropolitan cities equal the budget of Kathmandu Metropolitan City alone.

Most metropolitan cities have allocated adequate funding towards ongoing and multi-year infrastructure projects. The budgets also emphasize fiscal prudence in governance and current expenditures. However, the budget implementation status of these metropolitan cities remains poor, similar to federal and provincial governments. By the end of the month of Jestha (mid-June), all six metropolitan cities had spent only about 50 percent of their current year’s budget.

Kathmandu’s Budget Stable at Current Year’s Level

Kathmandu Metropolitan City presented its program, budget, financial bill, and appropriation bill for the fiscal year 2083/84 to the municipal assembly on May 18. Acting chief Sunita Dangol proposed an estimated total budget of NPR 2.588 billion (25 billion 88 million 30 thousand 55 hundred), of which NPR 2.513 billion (25 billion 13 million 30 thousand 55 hundred) will be spent from the contingency fund for policy and program implementation, and NPR 75 million will be allocated to other external expenditures.

In the current fiscal year 2082/83, the metropolitan city is executing a budget of NPR 2.511 billion (25 billion 11 million 43 thousand 41 hundred). Kathmandu Metropolitan City expects to manage resources totaling NPR 2.018 billion (20 billion 18 million 63 thousand 29 hundred) from internal revenues and bank deposits.

An estimated NPR 493 million (4 billion 93 million 67 thousand 26 hundred) will be received as grants from the Government of Nepal. Sources from public participation are expected to contribute NPR 1 million.

Geographically, 2.1 percent of the budget, amounting to NPR 541.82 million (54 crore 18 lakh 20 thousand), is allocated for economic development.

Social development accounts for 9.6 percent, or NPR 2.422 billion (2 billion 42 crore 27 lakh 31 thousand), while 61 percent, equivalent to NPR 15.316 billion (15 billion 31 crore 67 lakh 48 thousand), is earmarked for infrastructure development.

Good governance and related sectors receive 8.5 percent (NPR 2.134 billion), and office operations and administration are allocated 18.8 percent (NPR 4.717 billion).

Current Budget: NPR 2.511 billion

Upcoming Budget: NPR 2.588 billion

Budget Increase in Birgunj Metropolitan City

Birgunj Metropolitan City has announced a budget larger than that of the current fiscal year 2082/83. The budget for the upcoming fiscal year 2083/84 amounts to NPR 442.34 crore (4 billion 42 crore 34 lakh 69 thousand), compared to the current fiscal year’s budget of NPR 322.48 crore (3 billion 22 crore 48 lakh). The budget was presented by municipal executive member Jagat Sah Kanau on behalf of acting mayor Imtiaz Alam.

The metropolitan city has allocated spending as follows: NPR 240.35 crore (54.3 percent) for current expenditures, NPR 196.99 crore (44.6 percent) for capital expenses, and NPR 5 million (1.1 percent) on financial management.

Revenue sources include intergovernmental financial transfers from the federal government estimated at NPR 198.29 crore, internal revenue of NPR 148 crore, federal revenue sharing amounting to NPR 24.68 crore, provincial intergovernmental transfers estimated at NPR 5.28 million, provincial revenue sharing of NPR 1.67 crore, house and land registration fees generating NPR 45 crore, NPR 4.69 crore from last year’s cash balance, and NPR 15 crore from the municipal development fund.

Madhesh Province’s upcoming budget prioritizes education and health services, municipal sanitation, forest and environment conservation, agriculture, tourism, industry, quality physical infrastructure, and technology-based service delivery.

Current Budget: NPR 322 crore

Upcoming Budget: NPR 442 crore

Bharatpur Metropolitan City’s Budget at NPR 551 Crore

Bharatpur Metropolitan City in Chitwan has released a budget of NPR 551.7 crore (5 billion 51 crore 70 lakh 23 thousand) for fiscal year 2083/84. Acting mayor Chitrasen Adhikari presented the budget to the 19th municipal assembly on Monday. The current year’s budget stands at NPR 522 crore (5 billion 22 crore).

The metropolitan city projects internal revenue of NPR 204 crore from land registration and mineral resource sharing, intergovernmental financial transfers of NPR 217.74 crore, federal revenue sharing of NPR 33.13 crore, Bagmati Province revenue sharing of NPR 13.41 crore, NPR 4 crore from the municipal development fund, NPR 3 crore from public participation, NPR 74.5 crore in bank deposits, and NPR 1.93 crore from the Road Board Nepal.

An estimated NPR 125 crore will be spent on social security and other intergovernmental expenditures, and NPR 60 crore is allocated for completing ongoing and pending projects.

Separate budgets have been earmarked for highway maintenance, public building improvements, and the Gautam Buddha Cricket Stadium. A budget of NPR 94.9 crore has been allocated for 29 wards for ward-level projects.

Community schools will receive grants for water and electricity expenses, access to early childhood education will be expanded, and educational incentive programs will continue.

The metropolitan city has also arranged to waive water charges for consumers using up to 7,000 liters of water monthly. Disaster management has been allocated NPR 12.5 million, and NPR 10 million will be used for ambulances and rescue vehicles.

Viratnagar Metropolitan City’s Budget Slightly Reduced

Viratnagar Metropolitan City announced a budget of NPR 356 crore. Deputy mayor Shilpa Nirala Karki presented the budget for the coming fiscal year. The ongoing fiscal year’s budget currently stands at NPR 368 crore.

Of the projected revenue of NPR 356.47 crore, the federal government is expected to provide NPR 33.43 crore through financial equalization grants, NPR 73.29 crore in conditional grants, and NPR 5.6 million in capital grants.

The provincial government is estimated to provide NPR 3.63 crore via equalization grants, NPR 4.01 million in conditional grants, and NPR 6.63 million in capital grants.

A total of NPR 92.56 crore is expected to come through various revenue-sharing mechanisms. Internal revenue is projected at NPR 127 crore, with grants from various organizations at NPR 1.16 million and NPR 14 crore from bank deposits.

Expenditure allocations include NPR 160 crore for infrastructure development, NPR 26.5 million for social development, NPR 3.26 million for economic development, NPR 2.93 million for good governance and institutional development, NPR 2.59 million for forestry, environment and disaster management, and NPR 76.28 million for office operations and administration.

Implementation remains weak: only 44.76 percent of the NPR 368.28 crore budget has been expended by the end of Jestha (mid-June).

Pokhara Metropolitan City Also Reduces Budget

Pokhara Metropolitan City presented a budget of NPR 715.25 crore for the fiscal year 2083/84. Mayor Dhanraj Acharya introduced the policy and program last Thursday, and Deputy Mayor Manjudevi Gurung officially announced the budget at the 19th municipal assembly. This budget is reduced from the current fiscal year’s NPR 835.12 crore.

The budget expects total revenue of NPR 318.6 crore from the federal government, including conditional grants of NPR 261.91 crore, special grants of NPR 5.5 million, supplementary grants of NPR 1.82 million, and equalization grants of NPR 49.37 million.

Receipts from the Gandaki Province government are estimated at NPR 9.15 million. The metropolitan city aims to collect NPR 248.73 crore from internal and other sources.

Federal revenue sharing is projected to bring in NPR 34.34 crore, provincial revenue sharing NPR 4.09 million, and local government NPR 13.11 million. Total internal income is anticipated to reach NPR 387.49 million.

Budget execution is weak, with only 40 percent of the NPR 835 crore budget spent by the end of Jestha.

Lalitpur Metropolitan City’s Budget Comparable to Current Year with Reduced Capital Expenditure

Lalitpur Metropolitan City announced a budget of NPR 748.88 crore for the upcoming fiscal year, similar to the ongoing year’s NPR 747.41 crore. Acting deputy mayor Manjari Shakya reported that NPR 325 crore has been allocated for current expenses, which increased by NPR 28 crore due to salary increments.

Capital expenditure is budgeted at NPR 423 crore, a decrease from the previous year, reflecting reduced capital funding from both federal and provincial governments.

The metropolitan city has ensured budget allocations for projects currently in the tendering and construction phases, aiming to complete projects along with procurement of goods and services within the second quarter.

Anticipated revenues include NPR 136 crore from the federal government and NPR 17.63 crore from Bagmati Province. Revenues are expected to include NPR 335 crore from internal sources and NPR 106 million from intergovernmental authority transfers. The city also plans to spend NPR 147 crore from cash reserves.

Lalitpur has offered a 10 percent discount for taxpayers who submit property and land taxes by the end of Ashoj (mid-October). Furthermore, 50 percent tax discounts will be granted to businesses owned by single women, Dalits, persons with disabilities, or groups.

Tax exemptions are provided for land lease taxes for nursery, fruit, and vegetable farmers. Properties located in the World Heritage area will be exempt from property tax. Discounts on map approval fees for parking management to support public amenities are in place. A 25 percent discount on business renewal fees has been declared for the current fiscal year.