Far-Western Province Fails to Pass Budget, Revenue Collection Continues Under Temporary Law

The Far-Western Province government has been unable to pass the budget for the fiscal year 2081/82 in the Provincial Assembly. Led by Chief Minister Kamal Bahadur Shah, the government failed to secure the necessary majority due to minority status. However, despite the budget not being approved, the province continues to collect revenue under the Temporary Revenue Collection Act, 2081. Dhangadhi, 1st Shrawn.

Although the new fiscal year has begun, political disputes have prevented the passage of the 2083/84 budget in the Provincial Assembly. After Chief Minister Shah dismissed ministers, the UML party withdrew its support from the government, resulting in the failure to pass the current fiscal year’s budget. Following UML’s removal from government, Shah sought support from the main opposition, the Nepal Communist Party (NCP), to pass the budget. However, with the NCP also refusing to approve the budget as it stands, Shah found himself isolated.

According to Deputy Secretary of the Ministry of Finance, Dhan Bahadur Rokaya, even though the budget failed, the province’s budget is not entirely at a standstill. The provincial government has already enacted the Temporary Revenue Collection Act, 2081, which allows provincial offices to collect revenue starting from today. Section 3 of the Act provides for revenue collection under special circumstances, permitting the continuation of revenue collection. However, the provincial government has not been authorized to incur any expenditures.