14 Municipalities Fail to Present FY 2083/84 Budget on Time, 446 Rural Municipalities Comply

KATHMANDU: Fourteen municipalities across Nepal, including Dharan and Janakpur Sub-Metropolitan City, failed to present their budgets for the upcoming fiscal year 2083/84 (2026/27) within the deadline mandated by law, while the overwhelming majority of local governments complied with the constitutional timeline.

According to data released by the Nepal Municipal Association, 279 out of the country’s 293 metropolitan cities, sub-metropolitan cities and municipalities presented their annual budgets to their respective municipal assemblies by Asar 10, the deadline set under the Local Government Operation Act and the Financial Procedures and Fiscal Responsibility Act.

Among the municipalities that missed the deadline, Madhesh Province recorded the highest number, with ten municipalities failing to unveil their budgets on time.

Janakpur Sub-Metropolitan City, the provincial capital of Madhesh, was among the local governments that did not present its budget within the prescribed timeframe. Other municipalities missing the deadline include Garuda, Katahariya and Fatuwa Bijayapur in Rautahat; Hariban in Sarlahi; Sukhipur in Siraha; Kamala and Bideha in Dhanusha; and Jaleshwar Municipality in Mahottari.

In Koshi Province, Dharan Sub-Metropolitan City was the only municipality that failed to present its budget by the deadline.

Similarly, Melamchi Municipality in Sindhupalchok of Bagmati Province, Baglung Municipality in Gandaki Province, and Tikapur Municipality in Kailali of Sudurpashchim Province also missed the legal deadline.

By contrast, every municipality in Lumbini and Karnali provinces successfully tabled their budgets on time.

Overall, around 95 percent of Nepal’s municipalities complied with the legal requirement, leaving only about five percent that failed to present their budgets within the stipulated period.

The performance was even stronger among rural municipalities.

According to the National Association of Rural Municipalities Nepal (NARMIN), 446 out of the country’s 460 rural municipalities presented their budgets to village assemblies by Asar 10, representing a compliance rate of approximately 97 percent.

Only 14 rural municipalities missed the deadline. Of these, five had already presented their policies and programmes but were unable to table their budgets.

Province-wise, three rural municipalities each in Koshi, Madhesh and Lumbini failed to present budgets on time. Bagmati had one such case, while Karnali and Sudurpashchim each recorded two. All 58 rural municipalities in Gandaki Province met the deadline.

The associations said several administrative and practical factors contributed to the delays. These included incomplete budget preparation, illness of chairpersons, family emergencies requiring elected officials to remain outside their districts, transfers of chief administrative officers, and disagreements during the budget formulation process.

According to NARMIN, the rural municipalities that missed the deadline have indicated they will convene their village assemblies and present their budgets within the next few days.

The current budget is the fifth—and final—annual budget to be presented by representatives elected during the second term of Nepal’s local governments.

Under Nepal’s fiscal calendar, the federal government is required to present its annual budget on Jestha 15, provincial governments on Asar 1, and local governments by Asar 10. Failure to meet these statutory deadlines can negatively affect the performance evaluation conducted by the National Natural Resources and Fiscal Commission, potentially influencing future fiscal assessments and intergovernmental performance ratings.