At least 149 local governments missed the deadline – fixed by the Local Government Operation Act – to present their annual budget for the next fiscal year.
According to Section 71 of the law, local governments must table the annual budget at the municipal assemblies by Asar 10 (June 25 this year) after endorsing the estimation of annual income and expenditure from the municipal executive, according to the the Ministry of Federal Affairs and General Administration (MoFAGA).
Out of the total 753 local governments, some 565 presented their annual budget at their respective municipal assemblies yesterday, whereas the status of 39 local bodies still remains unknown.
The ministry has have received budget updates from 714 local units within office hours today. “The record shows that some 565 local governments have presented their budget yesterday –abiding by the law – whereas some 149 have not yet,” the ministry spokesman Jaya Narayan Acharya said, adding that the ministry had issued a circular to all local governments to unveil their budget by Asad 10 (June 25 this year) and endorse it within the deadline. “The local government law has made it mandatory to endorse annual budget of local governments from the municipal assembly by end of Asar (July 16).”
But the expenditures made by the local units without having endorsing such expenditures from the respective municipal assemblies are shown under unsettled accounts, according to the Office of the Auditor General (OAG). Local governments must spend their budget only after annual planning and budget allocation, and if they breach the process, the expenditures will be shown under unsettled arrears, according to OAG.
Some rural municipalities like Balan-Bihul Rural Municipality in Saptari district presented the budget for the current fiscal year in December 2018, which was endorsed by assembly only on April 13 this year, due to differences over allocation of budget among different wards. The rural municipality failed to present the budget for the next fiscal year 2019-20 as well.
According to the Intergovernmental Fiscal Arrangement Act, the local government must present their budget by Asad 10 (June 25 this year), but the law is being violated in a number of local governments since elected representatives assumed office after the 2017 local elections. Although the federal government had warned of cutting the grants to the local governments for failing to present the budget on time, it has not taken such step yet.
Delay in presenting the budget in time will hit the development projects at the local level, as the responsibility of the development of the local level has been on the local governments, under the federal structure.
According to Section 71 of the law, local governments must table the annual budget at the municipal assemblies by Asar 10 (June 25 this year) after endorsing the estimation of annual income and expenditure from the municipal executive, according to the the Ministry of Federal Affairs and General Administration (MoFAGA).
Out of the total 753 local governments, some 565 presented their annual budget at their respective municipal assemblies yesterday, whereas the status of 39 local bodies still remains unknown.
The ministry has have received budget updates from 714 local units within office hours today. “The record shows that some 565 local governments have presented their budget yesterday –abiding by the law – whereas some 149 have not yet,” the ministry spokesman Jaya Narayan Acharya said, adding that the ministry had issued a circular to all local governments to unveil their budget by Asad 10 (June 25 this year) and endorse it within the deadline. “The local government law has made it mandatory to endorse annual budget of local governments from the municipal assembly by end of Asar (July 16).”
But the expenditures made by the local units without having endorsing such expenditures from the respective municipal assemblies are shown under unsettled accounts, according to the Office of the Auditor General (OAG). Local governments must spend their budget only after annual planning and budget allocation, and if they breach the process, the expenditures will be shown under unsettled arrears, according to OAG.
Some rural municipalities like Balan-Bihul Rural Municipality in Saptari district presented the budget for the current fiscal year in December 2018, which was endorsed by assembly only on April 13 this year, due to differences over allocation of budget among different wards. The rural municipality failed to present the budget for the next fiscal year 2019-20 as well.
According to the Intergovernmental Fiscal Arrangement Act, the local government must present their budget by Asad 10 (June 25 this year), but the law is being violated in a number of local governments since elected representatives assumed office after the 2017 local elections. Although the federal government had warned of cutting the grants to the local governments for failing to present the budget on time, it has not taken such step yet.
Delay in presenting the budget in time will hit the development projects at the local level, as the responsibility of the development of the local level has been on the local governments, under the federal structure.
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