Against repeated direction – by Ministry of Federal Affairs and General Administration and Financial Comptroller General Office – to present their budget on time, some 21 local governments are yet to present their budget for the current fiscal year 2019-20.
Despite repeatedly circular to the local governments to present their budget, the 21 local bodies – 2 from Province 1, 8 from Province 2, 4 from Province 3, 2 from Province 5 and 5 from Karnali Province mostly village municipalities and few municipalities – have failed to present their budget even after more than four-and-a-half months of the current fiscal year. Apart from village municipalities the four municipalities – 2 from Kapilvastu and 1 each from Sarlahi district and Udayapur district – have failed to present their budget so far.
According to the Intergovernmental Fiscal Management Act, the local bodies must to present their budget by Asadh 25 (July 10). But according to the Financial Comptroller General Office (FCGO)’s latest report, some 21 local bodies have still not presented their fiscal policy. Most of the local bodies are facing internal conflicts in budget allocation apart from lack of trained manpower to formulate the budget.
As the local bodies have failed to present their budget, they have also not been able to receive the grant assistance from the federal government.
However, according to the Ministry of Federal Affairs and General Administration also, only 732 out of 753 local governments have presented their budget so far. The local governments cannot spend or mobilise revenue without presenting budget, which means those 21 local bodies do not have any money to spend for this fiscal year, though they have been spending and mobilising revenue on thoe own, which is not only illegal but also unconstitutional. “Thus, the 21 local bodies are utilising their budgetary expenses from the first tranche of the budget, which is automatically sent to their respective accounts after the fiscal year begins,” the ministry confirmed, adding that the heads of village municipalities and municipalities are still negotiating with Ministry of Federal Affairs and General Administration and Financial Comptroller General Office for a possible way out. “They are using their budget under ‘extraordinary’ or ‘emergency’ title only.”
However, inability to present the budget, will not be pardoned as the FCGO will put such budgetary expenses under the heading of arrears, according to the FCGO.
Despite repeatedly circular to the local governments to present their budget, the 21 local bodies – 2 from Province 1, 8 from Province 2, 4 from Province 3, 2 from Province 5 and 5 from Karnali Province mostly village municipalities and few municipalities – have failed to present their budget even after more than four-and-a-half months of the current fiscal year. Apart from village municipalities the four municipalities – 2 from Kapilvastu and 1 each from Sarlahi district and Udayapur district – have failed to present their budget so far.
According to the Intergovernmental Fiscal Management Act, the local bodies must to present their budget by Asadh 25 (July 10). But according to the Financial Comptroller General Office (FCGO)’s latest report, some 21 local bodies have still not presented their fiscal policy. Most of the local bodies are facing internal conflicts in budget allocation apart from lack of trained manpower to formulate the budget.
As the local bodies have failed to present their budget, they have also not been able to receive the grant assistance from the federal government.
However, according to the Ministry of Federal Affairs and General Administration also, only 732 out of 753 local governments have presented their budget so far. The local governments cannot spend or mobilise revenue without presenting budget, which means those 21 local bodies do not have any money to spend for this fiscal year, though they have been spending and mobilising revenue on thoe own, which is not only illegal but also unconstitutional. “Thus, the 21 local bodies are utilising their budgetary expenses from the first tranche of the budget, which is automatically sent to their respective accounts after the fiscal year begins,” the ministry confirmed, adding that the heads of village municipalities and municipalities are still negotiating with Ministry of Federal Affairs and General Administration and Financial Comptroller General Office for a possible way out. “They are using their budget under ‘extraordinary’ or ‘emergency’ title only.”
However, inability to present the budget, will not be pardoned as the FCGO will put such budgetary expenses under the heading of arrears, according to the FCGO.
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