Revenue Collection Halted in Sudurpaschim Province Amid Budget Impasse

Dhangadhi: The revenue collection activities in Sudurpaschim Province have been halted since Tuesday due to the failure of the state government to pass the budget within the stipulated timeframe.

According to the constitution, the state government’s budget must be passed by the end of the fiscal year. However, political conflicts prevented the budget bill from being approved, resulting in a complete standstill of revenue collection activities, including house registration, vehicle registration, renewals, name changes, and road permits.

The budget impasse has effectively brought the economic operations of the Far West government to a halt. Since Tuesday, the first day of the fiscal year 2081/82, the provincial government has been unable to generate or spend income due to the legal vacuum created by the lack of a budget.

This has halted not only revenue collection but also daily administrative expenses. The state government must now generate income through the Economic Act and spend through the Appropriation Act.

Surendra Bahadur Pal, the former Minister of Economic Affairs, presented a budget of 31.62 billion rupees to the state assembly on Ashar 1. However, political shifts at the national level, particularly the withdrawal of support by the UML party on Ashar 20, led to the budget's collapse. As the new financial year began, the budget-related bills expired, plunging the state’s financial system into uncertainty.

Political maneuvering by Chief Minister Dirgha Bahadur Sodari and key political leaders in the state assembly contributed to this situation, leaving revenue collection offices deserted. Chief Minister Sodari attempted to introduce the budget through an ordinance on Monday. The Council of Ministers had decided on Sunday to recommend ending the Provincial Assembly session to facilitate this.

However, the provincial chief, Nazir Mian, was unavailable as he had left Kathmandu, and the session was not ended, blocking the government’s ordinance route. The stalemate continues to affect the economic stability of Sudurpaschim Province, highlighting the severe impact of political strife on governance and public administration.