Fifteen local levels in Madhesh Province have yet to endorse their budgets nearly five months after the start of the fiscal year. Although local bodies are legally required to announce budgets by Asar 10 (June 24), political disagreements have again delayed the process. Last month, only 28 local governments managed to pass their spending plans. Budget delays are recurring: in FY 2024/25, 32 local levels nationwide missed the deadline, 25 of which were from Madhesh. Without approved budgets, local bodies cannot collect revenue, pay staff, implement development projects, or access federal grants—risking mounting arrears and stalled local development.
