Kathmandu, Aug 3: The Ministry of Land Management, Cooperatives, Federal Affairs, and General Administration has called on all local levels to uphold fiscal discipline in course of budget allocation and implementation.
As outlined in sub-section 3 of section 24 of the Local Government Operation Act, 2074, rural municipalities and municipalities have identified ten key priorities for their planning, which include direct contributions to economic development and poverty alleviation, as well as ensuring productive and swift returns. In line with these priorities, the Ministry is urging local governments to maintain fiscal discipline in how they allocate and implement their budgets. It’s essential that local plans align with the policies, goals, objectives, deadlines, and procedures set by both the federal and provincial governments to ensure good governance.
The Ministry emphasizes the importance of addressing interconnected issues like environmental protection and climate change. They are keen on ensuring that the planning, budget allocation, and effective implementation processes lead to the maximum welfare of citizens through comprehensive economic, social, and infrastructural development at the local level.
However, the Ministry has noted some concerns regarding budgets being allocated to organizations outside their priority areas in certain rural municipalities and municipalities, which goes against existing laws.
They have pointed out that fiscal discipline is not being upheld in the execution of these budgets. The Ministry has reiterated that local levels must adhere to the Local Government Operation Act and other relevant laws while focusing on matters of significant interest.