Koshi Province Government Nears Finalization of Rs 40 Billion Budget

Biratnagar. The Koshi Province Government's Ministry of Economic Affairs and Planning is in the final stages of preparing the budget to be presented in two days, on Asar 1. Sources indicate that the provincial government is likely to present a budget of around 40 billion rupees this time. The Ministry of Economic Affairs and Planning estimates that approximately 13 billion rupees will come from revenue sharing within the 40 billion rupee source. For the upcoming fiscal year 2083/84, Koshi Province will receive an grant of 16 billion 47 crore 10 lakh rupees from the federal government. Similarly, the ministry estimates collecting 5 billion from internal revenue and having an estimated savings of 5 billion from unspent funds in the current fiscal year. These sources total approximately 39.5 billion rupees. The provincial government anticipates no difficulty in showing the source for the additional 1 billion rupees needed. Ministry sources say preparations are underway to create a budget larger than 40 billion rupees, either by securing foreign grants, internal loans, or by increasing the estimated savings amount. During Chief Minister Sherdhan Rai's tenure, Indra Bahadur Angbo, who also served as the Minister of Economic Affairs and Planning, presented the largest budget in Koshi Province's history at 43 billion 40 crore rupees for the fiscal year 2077/78. However, the actual expenditure for that fiscal year was only 27 billion 95 crore rupees. Subsequently, when Chief Minister Rajendra Rai was in office, the same Minister of Economic Affairs and Planning, Angbo, presented the second-largest budget of 39 billion 92 crore rupees for the fiscal year 2079/80. Since then, the budget size has consistently been around 35-36 billion rupees. The provincial government had allocated a budget of 35 billion 87 crore 99 lakh rupees for the current fiscal year. However, due to weak resource availability and cuts in grants from the federal government, the revised budget estimate was reduced to 32 billion 45 crore 64 lakh rupees. Ceiling Increased, Chief Minister-Minister Tussle Begins As the Ministry of Economic Affairs and Planning decided to increase the budget size, the ceilings for ministries have also been raised for the second time. The Ministry of Economic Affairs, which had previously sent a ceiling of around 28 billion, increased it to approximately 32 billion on Friday, according to sources. The ceiling for the Ministry of Physical Infrastructure has been increased by 1 billion. Similarly, Minister Bhim Parajuli is reportedly displeased with a 10 crore increase in the budget for the Ministry of Tourism, Forest, and Environment. Sources claim that ministers of other ministries are also upset with the Minister of Economic Affairs, Bidur Lingthep, and that pressure from lawmakers is mounting. Chief Minister Hikmat Kumar Karki is also pushing for the management of projects worth around 1 billion for face-saving purposes, as this is his final budget. However, sources claim that Chief Minister Karki's tussle with Minister Lingthep has intensified as the Ministry of Economic Affairs is trying to block it, citing insufficient resources. The work of entering plans into the system has been opened until Sunday morning. Previously, the Ministry of Economic Affairs had locked the system from Friday midnight, stating the need for time to review the budget. Following this, the entry of plans for the Ministry of Drinking Water, Irrigation, and Energy and the Ministry of Physical Infrastructure Development was halted. The Ministry of Economic Affairs and Planning has stated that it was reopened until Sunday morning under pressure from the Chief Minister. 'We were given the ceiling on Baishakh 3rd. Entry hasn't happened yet, so there was a problem of when it would be done,' said an official from the Ministry of Economic Affairs and Planning. Preparation to Add Multi-year Projects Worth 4.5 Billion Meanwhile, the Provincial Government's Ministry of Physical Infrastructure Development has recommended new projects worth 4.5 billion rupees for approval to the Ministry of Economic Affairs. However, the ministry's spokesperson and deputy secretary, Sushil Bastola, stated that the list of these projects has not yet reached the Ministry of Economic Affairs. 'The list of multi-year projects has not reached us; we have only heard rumors. We need to examine the documents according to the procedures. We need to check what kind of projects they are. Only then will they be approved,' Bastola said. 'If they arrive at the last moment, there won't be enough time to proceed with the process. We are busy with budget preparation.' However, the government's plan is to include multi-year projects in the red book as annual projects without explicitly stating them in the budget speech and later secure funding agreements to designate them as multi-year projects. The provincial government currently has a liability of 20 billion 61 crore rupees for multi-year projects. Opposition parties argue that creating an additional liability of 4.5 billion will lead to an economic crisis. However, according to the Ministry of Economic Affairs and Planning, they have concluded that reducing the 20 billion multi-year liability to 13 to 14 billion and introducing new projects worth 4-5 billion will not cause significant problems. 'Currently, the liability is around 20 billion. After deducting chronic (long-standing) liabilities, it might be around 16-17 billion,' Bastola said. 'This year, approximately 3 billion has been reduced so far. By the end of the fiscal year, with an additional 1 billion reduction, it will be 4 billion. Therefore, the liability is estimated to be limited to 13 to 14 billion.' Multi-year projects from the fiscal year 2075/76 are still not completed in Koshi Province. For the current fiscal year, the government had allocated only 2 billion 21 crore rupees for multi-year projects.