News Digest: Federal Affairs (January 27 – February 2, 2022)


Economy and Development

Chief Minister (CM) of Gandaki Province, Krishan Chandra Nepali administration has demanded NR. 5 billion additional budgets from the federal government to complete the development plan. A team including CM Nepali on January 31 reached Kathmandu and gathered with Prime Minister Sher Bahadur Deuba’s administration for the budget. CM Nepali also informed the government that the provincial government has been burdened by NR. 16 billion while a previous government led by Prithvi Subba Gurung pushed the multi-year projects without resources.

Madhes Province has spent only a 7.5 percent capital budget during six months in the current fiscal year 2021-22. However, Madhes Province had presented a budget on time but due to delay in allocation and distribution, the provincial government has low performance in budget implementation. Similarly, CM Lal Babu Raut has made efforts to attract private sector investment over the province.

The finance minister Janardhan Sharma, on January 28 organized a meeting first with the Economic Affairs and Planning ministers of seven provinces which formed under Article 22 of the federal, provincial, and local (Coordination and Interrelationship) Act, 2077 BS. During the meeting, the panelists also discussed the budget implementation in the provincial and local government. Minister Sharma also informed that the government will provide a large size of budget for those provincial/local governments to spend the budget properly.

Bagmati Province is going to set up three chemical fertilizer factories in different parts of the province in collaboration with a Thailand company.

Royalty distribution

According to the Finance Comptroller General Office, 120 out of 753 local governments received worth of NR. 70.671 million electricity royalties in the current fiscal year from the last fiscal year 2020-21’ royalty collection. A total NR. 2.82 billion electricity royalty, the federal government received NR.1.41 billion (50%), while provincial and local governments received NR. 70.671 million (25%) each. Similarly, Bhotekoshi Rural Municipality of Sindhupalchowk has received the worth of NR.180 million royalty as the highest among the local governments. Madhes Province did not receive any amount of royalty, and Bagmati has received the highest amount.

Administration issues

Out of 74 registered bills in the Lumbini Provincial Assembly, it has passed 67 bills in four years. There are remaining bills; two are under consideration in the thematic committees and one in the secretariat while one bill was sent back from the assembly and three others from the thematic committees.

On February 1, the cabinet meeting of Madhes Province formed a Infrastructure Construction Study Committee. The committee supports constructing the provincial administrative buildings. 

Locals of Chautara Sangachowkgadi Rural Municipality of Sindhupalchowk have padlocked the office of Ward-8. With the signatures of 54 locals, they have issued notice to the ward chair for effective services. The local also accused the ward chair of being involved in irregularities.

On January 30, Province 1 government formed a taskforce to finalize its provincial name. The provincial government has selected the suggestion given by the task force.

The services have been halted in Tansen Municipality of Palpa due to the COVID-19 pandemic.  Similarly, the offices’ function has been halted in Division Forest in Lamjug due to lack of staff. Only 23 out of 45 posting work in the office.

Madhes Provincial government has directed them to take action against the Janmat party cadres who are vandalizing the vehicles. The cadres of Janmat Party vandalized vehicles and started violent activities with the representatives during the votes for the National assembly election.

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