Kathmandu— The Ministry of Land Management, Cooperatives, Federal Affairs, and General Administration has issued a directive urging all local levels in Nepal to uphold fiscal discipline during the allocation and implementation of their budgets. The ministry emphasizes the need for local governments to align their plans with federal and provincial policies while focusing on key priorities such as economic development, poverty alleviation, environmental protection, and climate change.

Key Priorities Identified

Sub-section 3 of section 24 of the Local Government Operation Act, 2074, outlines ten key priorities for local planning. These include direct contributions to economic development and poverty alleviation, as well as ensuring productive and swift returns on investments. The Ministry stresses that these priorities must be central to all budget allocations and implementation processes.

Concerns Over Budget Allocation

The Ministry has expressed concerns over the allocation of budgets to organizations outside their priority areas in certain rural municipalities and municipalities, which is contrary to existing laws. They have noted that fiscal discipline is not being upheld in the execution of these budgets.

"It’s essential that local plans align with federal policies," said a spokesperson for the Ministry.

(With inputs from Rising Nepal)

Originally published on abcnews.com.np.