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Model budget law sent to local governments to enforce fiscal discipline

himalaya Diary News Service by himalaya Diary News Service
December 15, 2025
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The Ministry of Federal Affairs and General Administration has circulated a model law on economic procedures and financial accountability to all 753 local governments. The law requires local units to justify policies, programs, and budgets based on measurable outcomes and priorities. New capital expenditure projects must now be proposed only after approval of a feasibility study with technical and financial justification. The reform aims to end ad hoc budgeting practices, address concerns raised by the Office of the Auditor General, and promote inclusive budget planning through greater involvement of ward committees and community representatives.

 

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