27 local governments miss budget deadline for fiscal year 2026-27
Summary
A total of 27 local governments in Nepal missed the June 24 deadline for presenting their budgets for fiscal year 2026-27, leading to a reduction in performance-based fiscal grants.
Key Points
- 27 local governments failed to present their budgets by the June 24 deadline for fiscal year 2026-27.
- The local governments missing the deadline include 2 sub-metropolitan cities, 10 municipalities, and 15 rural municipalities.
- Delays were caused by tensions between government officials, disagreements among elected representatives, and federal oversight.
- Local governments that miss the deadline lose five points in conditional grants under the equalisation grant heading for the next fiscal year.
