KMC Budget Delay Threatens Services and Salaries as Deadline Nears

With the June 24 deadline fast approaching, Kathmandu Metropolitan City (KMC) has yet to finalize its annual budget for the fiscal year 2025/26, raising concerns over potential disruptions to key services and staff salaries.

Though municipal staff have already prepared a draft budget of around Rs 40 billion, no official meetings have been held to approve it. The city has yet to convene its municipal assembly or conduct executive or budget committee discussions.

The delay stems from internal disputes between Mayor Balen Shah and Chief Administrative Officer Saroj Guragain, as well as poor coordination with Deputy Mayor Sunita Dangol. These disagreements have stalled essential pre-budget discussions and resource allocation meetings.

According to the Local Government Operation Act, local governments must present their budget by June 24. If KMC fails to do so, important infrastructure projects and public services may be delayed.

Despite the deadlock, city officials remain hopeful that a last-minute agreement will be reached to avoid a governance crisis.