Local Level Budgets for FY 2080-081 to be Publicized Today

The budgets for the upcoming financial year 2080-081 are being made public today at the local level. As per the Local Government Operation Act, it is mandatory for local levels to present their annual budgets before the 10th of Ashad each year.

The Ministry of Federal Affairs and General Administration has announced that 10 local levels have already released their budgets, while the remaining 743 local levels will announce theirs today.

In the budget announcement, local levels are prioritizing development, construction, health, tourism, and education.

Process of Local Budget Drafting:

According to the Local Government Operation Act of 2074, there are provisions for submitting and passing the budget. Section 71 of the act states that the vice president, deputy head, or any appointed executive member must obtain approval for the revenue and expenditure estimate (budget) for the next financial year from the executive and submit it to the assembly by the 10th of Ashad.

The budget should include actual details of revenue and expenditure from the previous financial year, revised estimates of income and expenditure for the current financial year, and projected details of plans, programs, and income expenditure for the next financial year.

Discussion on the submitted budget should be completed within 15 days. The assembly can pass the budget or provide suggestions to the executive. The executive must reconsider the budget with suggestions and resubmit it to the assembly within five days, either with necessary amendments or with reasons if no amendments are required. The budget should be passed by the end of Ashad.

Officials of rural villages and municipalities elected in the first election are exempt from submitting and passing the budget within two months of assuming office. Supplementary estimates and other provisions related to the budget will be in accordance with local laws. Local levels can impose taxes and non-taxes as per local laws.

Programs and budgets at the local level should adhere to the provisions of the Centre, Province, and Local Level (Coordination and Interconnection) Act of 2077 and the Standards for Project Allocation at the Centre, Province, and Local Level of 2076.

Provisions should be made to ensure that administrative expenses, revenue distribution, and funds received from internal revenue are utilized for conducting other development programs outlined in their rights list. Revenue distribution and resources apart from internal revenue should not be allocated for activities such as vehicle, building, and land purchases.