Bagmati Province to Review Controversial Budget Amid Financial Strain

The Bagmati Province government has decided to review its budget for the ongoing fiscal year 2082/83. A Cabinet meeting held in Hetauda on Friday approved a study to reassess the provincial spending plan.

Government spokesperson and Finance Minister Prabhat Tamang said the review was necessary due to current financial constraints and the added burden of administrative restructuring across the province. “Given the difficult situation, the Cabinet has approved the proposal to begin the study for budget revision,” he stated.

The budget, amounting to Rs 67.47 billion, was introduced under former Chief Minister Bahadur Singh Lama but has faced controversy since its announcement. To address disputes, a joint task force from the ruling Nepali Congress and CPN-UML had earlier studied alleged irregularities and errors in the plan.

On Thursday, an all-party meeting in Hetauda also endorsed reducing government expenditure. The provincial government now aims to cut costs and restructure spending priorities through the revision process.

In a previous decision, the Cabinet had already set a rule that projects worth Rs 10 million or more would only be implemented through formal bidding. Out of the total budget, Rs 26 billion had been allocated for recurrent expenses and Rs 41.43 billion for capital expenditure.