Budget rush to Singha Durbar persists despite federalism

KATHMANDU: Despite Nepal’s transition to a federal system with three tiers of government, the tradition of flocking to Singha Durbar for budget allocations continues unabated.

As preparations for the fiscal year 2082/83 move forward, elected representatives and local leaders are once again lining up in the capital with project proposals in hand.

Officials from the Ministry of Physical Infrastructure and Transport report an overwhelming number of small-scale project proposals being submitted, with Secretary Keshav Kumar Sharma revealing that requests for funding have been made for over 12,000 to 14,000 projects. “There are no restrictions on budget requests, which is why the rush to Singha Durbar hasn’t declined,” Sharma said.

He emphasized the need for a clear national policy. “If we establish a policy that the central government will not handle projects outside of national highways, this trend could be brought under control,” he stated, adding that clear guidelines and a dedicated mechanism for evaluating and allocating budgets are urgently needed.

The current situation has created a culture of expectation, where individuals and organizations approach the central government for even the smallest development schemes. This unregulated environment, Sharma noted, has led to unnecessary duplication and inefficiency in project planning.

Meanwhile, Finance Minister and Deputy Prime Minister Bishnu Prasad Paudel has been actively consulting with major political leaders in preparation for the new budget.

On Monday, he met with Nepali Congress President Sher Bahadur Deuba at his Budhanilkantha residence to seek suggestions. A day later, Paudel visited CPN (Maoist Centre) Chairman Pushpa Kamal Dahal in Khumaltar for similar discussions.

Critics say such political consultations often lead to a budget focused more on appeasement than on policy priorities, encouraging more representatives and groups to pressure for inclusion of their projects.

Even local-level employees have joined the budget race. The Local Government Employees’ Association of Nepal submitted a 10-point memorandum to Finance Minister Paudel, demanding their concerns be addressed in the upcoming fiscal plan.

Their demands include the establishment of a separate hospital for local government staff, or at the very least, access to services at the Civil Servants’ Hospital for employees and their families.

The association also called for the inclusion of contract-based local staff in the Social Security Fund and uniform salary increments adjusted to inflation.

As the budget deadline nears, it remains to be seen whether policy reform will take precedence over political bargaining in shaping the nation’s economic future.