The Kathmandu Metropolitan City (KMC) has failed to present its budget for the upcoming fiscal year (FY 2025/26) within the legally mandated deadline. This marks the first time since the country adopted federalism that Nepal’s largest and wealthiest metropolitan city has missed the budget submission deadline.
According to the Intergovernmental Fiscal Arrangement Act, 2017, local governments must submit their annual budget by Asar 10 (June 24). Tuesday was the final day for municipalities to table their budget, but KMC was unable to do so due to internal disputes among the city’s top leadership.
The failure stems from a lack of consensus between Mayor Balen Shah, Deputy Mayor Sunita Dangol, and the Chief Administrative Officer. Typically, the mayor instructs the chief administrative officer to issue the notice for the municipal assembly, while the deputy mayor presents the budget. However, KMC spokesperson Navin Manandhar confirmed that the notice was not issued, preventing Dangol from presenting the budget to the assembly.
While Kathmandu failed to meet the deadline, other major cities including Lalitpur, Pokhara, Birgunj, Biratnagar, and Bharatpur succeeded in announcing their budgets on time. The combined budget of these five metropolitan cities totals Rs 28.62 billion.
Lalitpur: Focus on Heritage, Green Development
Lalitpur Metropolitan City has announced a budget of Rs 7.46 billion for fiscal year 2025/26. Presented by Deputy Mayor Manjali Shakya Bajracharya, the budget prioritizes prosperity and good governance, heritage conservation, sustainable infrastructure, environmental protection, and quality education.
Key policies include tax exemptions for heritage-compliant buildings, parking management incentives for the private sector, and tax rebates for electric vehicle owners and agricultural land use agreements.
Pokhara: Youth Inclusion and Infrastructure
Pokhara Metropolitan City has unveiled a budget of Rs 8.35 billion, focusing on agriculture, tourism, infrastructure, education, and health. Deputy Mayor Manju Devi Gurung presented the budget during the 17th municipal assembly.
The budget introduces the ‘I Speak My Story’ initiative for Generation Z, international youth exchange programs with sister cities, and the 'Pokhara Skill Bank' program to empower youth for digital economy participation.
Other priorities include dismantling redundant structures, promoting faceless public services, and enacting cost-control measures through new regulations and procedures.
Birgunj: Emphasis on Education, Health, and Heritage
Birgunj Metropolitan City has announced a budget of Rs 3.22 billion — an increase of Rs 330 million from the previous year. Deputy Mayor Imtiyaz Alam presented the budget, with education, health, sanitation, tourism, and digital-friendly service delivery among its priorities.
Mayor Rajeshman Singh also announced plans to establish a 'Railway Museum' to commemorate 100 years since the launch of Nepal’s first railway service in Birgunj.
Biratnagar: Smart Classrooms and Social Programs
Biratnagar Metropolitan City has presented a budget of Rs 4.4 billion for the upcoming fiscal year. Deputy Mayor Shilpa Nirala Karki highlighted initiatives such as smart boards, AI, robotics, and coding programs under the slogan “Smart Class, Smart Student.”
Healthcare plans include 24-hour emergency services, a birthing center, radiology and Ayurvedic services, free health insurance for persons with disabilities, and the expansion of autism care facilities.
The budget also targets infrastructure improvements, including ring roads, economic zones, drainage, wastewater treatment, and smart road development. The city has allocated Rs 1.68 billion for physical infrastructure, the largest share of the budget.
Bharatpur: Social Inclusion and Infrastructure Continuity
Bharatpur Metropolitan City has announced a budget of Rs 5.19 billion. Mayor Renu Dahal emphasized sustainable urban infrastructure, regular road maintenance, completion of pending projects, and coordination with federal and provincial governments.
The city has also included social programs such as honoring inter-caste marriages between Dalits and non-Dalits, declaring child-friendly wards, and increasing access to quality education and healthcare.
