Dhanusha Municipality Limits Ward-Level Budget to NPR 1 Million for Fiscal Year 2083/084

May 23, Dhanusha – The Dhanusha Municipality has decided to cap the ward-level budget at NPR 1 million for the upcoming fiscal year 2083/084, sparking discussion among local authorities. In previous years, wards planned projects with budget ceilings as high as NPR 5.5 million, but this year’s reduction of NPR 4.5 million has placed significant pressure on them. The municipality recently issued budget ceilings and guidelines to all 10 wards, allowing expenditures in areas such as economic development, social progress, infrastructure, good governance, inter-sector coordination, and forest and environmental conservation. Wards have been directed to formulate participatory plans within the NPR 1 million limit.

According to the municipality, the decrease in budget ceiling reflects diminished financial transfers from federal and provincial governments, weak resource utilization in previous years, and increasing liabilities. For the fiscal year 2082/083, the municipality announced a budget of NPR 1.1225 billion. However, reduced grant amounts for the upcoming fiscal year may result in certain projects falling under liabilities. Chintan Tamang, chief of Dhanusha Municipality, noted that liabilities have been rising for several years and emphasized that setting high budgets without secured funds could hinder implementation. He added that the realistic ceiling is intended to avoid long-term adverse impacts on the public.

However, several ward chairpersons expressed dissatisfaction with the new limit. Milan Khadgi, chairperson of Ward No. 6, pointed out that NPR 1 million falls far short of public expectations and needs. He stated that with numerous issues and community demands, prioritization within the restricted budget would be difficult. Similarly, Nagendra Pandey, chairperson of Ward No. 10, said the limited budget makes it nearly impossible to undertake essential development programs at the ward level. He stressed that even maintaining basic infrastructure within NPR 1 million is challenging, which will inevitably affect development outcomes. The municipality has set aside NPR 468,000 for operational and miscellaneous ward expenses. Additionally, under social development programs, a minimum allocation of NPR 50,000 is required, and preference should be given to upgrading existing road routes rather than opening new ones.