First Month of Fiscal Year Ends Without Budget Approval for Key Tourism and Aviation Bodies

The Nepal Tourism Board, Civil Aviation Authority of Nepal, and Nepal Airlines have yet to approve their budgets for the current fiscal year 2083/84. The Nepal Tourism Board remains without leadership, and although the CEO appointment process is underway, it has hindered the budget formulation. While the budget for the Pashupati Area Development Trust has not been passed, the Lumbini Development Trust’s budget has been approved, according to the Ministry of Culture, Tourism and Civil Aviation. As of 7th Bhadra, Kathmandu.

The current government appears to be repeating past failures in the tourism sector. The bodies responsible for promoting tourism, regulating aviation services, and providing those services have still not brought forward budgets for the fiscal year 2083/84. The Nepal Tourism Board, the Civil Aviation Authority of Nepal, and Nepal Airlines have yet to receive budget approval.

Significantly, the first month of the fiscal year (Saun) has concluded, and the first week of Bhadra has begun, but preparations for the budget have not started in many institutions. The Nepal Tourism Board is currently without leadership. Even with progress in the CEO appointment process, momentum remains slow, directly impacting budget preparation, according to a senior board official.

“The CEO is the most critical person for preparing and implementing the budget at the Tourism Board,” said the official. “The budget must be made according to the CEO’s vision and priorities, but currently the board has no leadership.” A committee led by a joint secretary from the Ministry of Tourism has been formed for the CEO appointment, but there has been no evident urgency from the government side.

This year, the Nepal government declared the “Year of Health Tourism.” However, the ministry has yet to allocate a budget for this program. It is waiting for the board’s budget to implement the initiative, which in turn is likely to affect the board’s regular programs.

The government’s recent indiscriminate appointments in the tourism sector have stirred controversy. The Supreme Court has nullified the appointment of an executive chairperson at Nepal Airlines made in violation of the law. With the institution without leadership, Nepal Airlines has been unable to pass a new budget.

A budget proposal was presented through a subcommittee to the board of directors. According to a senior official of the Civil Aviation Authority of Nepal, the budget has stalled after the Supreme Court canceled the appointment of 80-year-old Maheshwar Bhakt Shrestha, who was unlawfully appointed by the government.

Public institutions are permitted to spend up to one-fourth of their budget in advance, which is how they have been managing their expenses. Similarly, the Civil Aviation Authority has not passed a new budget. A senior authority official indicated that while the budget proposal is ready, the board of directors has not approved it.

The chairman of the authority’s board is the Minister of Culture, Tourism and Civil Aviation, Khadkaraj Paudel. The official stated that efforts are underway to finalize the budget within the next week. Previously, ministers used to prolong budget approvals to favor their own constituencies, but the new government had hoped to break that pattern; however, delays have occurred once again.

Delays in approving these institutions’ budgets result in postponed project preparations and hinder capital spending. Procurement plans get delayed, preventing the institutions from fulfilling their objectives effectively. Similarly, the budget for the Pashupati Area Development Trust remains pending. In contrast, the Lumbini Development Trust’s budget has been approved, the ministry confirmed.

Jaynarayan Acharya, spokesperson and joint secretary at the ministry, stated that delayed budgets generally impact institutional progress. “If budgets can be approved promptly, procurement activities can proceed efficiently,” he said. “The ministry’s priority is to ensure all institutions receive their budgets as quickly as possible.”