Wednesday, July 1, 2026 03:30 PM

Budget rows paralyse provincial assemblies

Kathmandu, July 1: Budget disputes have disrupted legislative business across several provinces, exposing growing divisions within ruling parties and delaying approval of spending plans just days before the new fiscal year.

The deadlock comes as the ruling Rastriya Swatantra Party continues to question the effectiveness of Nepal’s provincial structure. Ironically, the provinces themselves are struggling to function because of disagreements over budget allocations.

In Koshi Province, repeated objections from lawmakers have forced the provincial assembly to postpone its meetings. Chief Minister and senior leaders are negotiating with dissatisfied members in an effort to break the impasse and move the budget forward.

In Bagmati Province, the budget has sparked a rift within the ruling Nepali Congress. A group led by former chief minister Bahadur Singh Lama has rejected the budget presented by Chief Minister Indra Bahadur Baniya and boycotted assembly proceedings.

The crisis is even deeper in Lumbini Province, where the budget remains stalled more than two weeks after it was tabled. Lawmakers have accused the government of opaque budget allocations, while ruling UML legislators themselves have demanded major revisions. Some have even called for the budget to be rewritten, prompting Chief Minister Chet Narayan Acharya to explore possible amendments.

In Karnali Province, the opposition has blocked assembly proceedings, accusing the government of ignoring demands to revise controversial allocations. Opposition lawmakers have objected to funding for institutions named after political leaders, projects linked to individuals, and religious sites, saying such spending reflects misplaced priorities.

Meanwhile, political disagreements within the ruling coalition have prevented budget deliberations from even beginning in Sudurpashchim Province.

The disputes have raised fresh concerns about governance at the provincial level, with several assemblies struggling to complete one of their most important constitutional responsibilities: approving annual budgets before the start of the new fiscal year.

People’s News Monitoring Service

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