Despite court ban on pork-barrel funds, provinces continue billions in allocations to lawmakers

Summary

Provincial governments in Nepal continue allocating billions for projects selected by lawmakers despite a Supreme Court ban on the Constituency Development Fund, with Sudurpashchim, Karnali, Lumbini, and Bagmati provinces preparing budgets that allow lawmakers to prioritize local projects.

Key Points
  • Nepal's provincial governments are preparing to allocate billions of rupees in the 2026-27 fiscal year for projects recommended by provincial assembly members despite the Supreme Court’s ban on the Constituency Development Fund.
  • Sudurpashchim province plans to allocate Rs2.23 billion, with Rs50 million and Rs30 million ceilings for projects recommended by directly elected and proportional representation lawmakers respectively.
  • Lumbini province is increasing lawmakers’ project ceilings to Rs40 million for directly elected members and Rs20 million for proportional representation members, triggering criticism from local governments over political interference.
  • Bagmati province is preparing to allocate over Rs4 billion for lawmaker-selected projects, replicating the structure of the now-defunct development fund despite public scrutiny.
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