Two months into FY 2024–2025, 103 local bodies lack budgets.

As of now, 103 out of 753 local bodies have not yet submitted their budgets to their respective councils, two months into the fiscal year 2024–25. The Intergovernmental Fiscal Arrangement Act of 2017 mandates that the federal government submit its budget by May 28 to the province and municipal governments, and the federal government by June 15 to June 25. Many are still not in compliance even though the deadline for local levels passed more than two months ago. Forty-two local bodies missed the deadline last year.

Based on information from the Ministry of Federal Affairs and General Administration, not a single local municipality in the seven provinces has completed and submitted their budget. Out of 136 municipalities in Madhesh Province, 47 have not yet submitted their budgets. In a same vein, budgets have been released by 123 out of 137 local bodies in Koshi Province, 103 out of 119 in Bagmati Province, 82 out of 85 in Gandaki Province, 95 out of 109 in Lumbini Province, 74 out of 79 in Karnali Province, and 84 out of 88 in Sudurpashchim Province.

With 96.5% of budget presentations, Gandaki Province tops the list; Madhesh Province comes in last at 65.4%, suggesting less fiscal prudence and financial control in Madhesh.

Many towns have not presented their budgets by June 25th, as required by law. There were still 103 municipalities without budgets as of September 5. There could be data gaps since some of the people who presented their budgets might not have supplied the required information to the Central Statistics Office. According to historical patterns, several towns still don't present their budgets by the end of the fiscal year.

A municipality is required by the National Natural Resources and Fiscal Commission to submit a temporary budget in compliance with legal and constitutional requirements if it is unable to enact or approve its current budget. In these situations, towns must enact a temporary bill to govern the interim until the final budget is authorized. Nevertheless, the majority of towns failed to submit either a final or a preliminary budget before the deadline.

A commission source claims that in many municipalities, the absence of an annual budget has resulted in the suspension of annual programs and the cessation of daily administrative operations.

After the assembly, the source stated, "Local bodies that fail to present a budget for any reason must grant financial authority to the municipal head within seven days." It is impossible to operate an account without this authority. A lawsuit against the mayor prevented Godawari Municipality from presenting its budget; however, the lawsuit has now been settled.

Municipalities that have not yet released their budgets are finding it more and more difficult to manage day-to-day operations and administrative costs.