Presenting the federal budget in the joint session of the parliament, Finance Minister Bishnu Paudel announced that the government will not implement projects costing less than Rs30 million. “This is expected to support resource management for implementing national pride and nationally prioritised projects and to make project execution more effective,” he said on May 29.

However, Paudel’s announcement has not been reflected in the budget allocation. The KP Sharma Oli government is implementing even small projects with a meagre budget of a few hundred thousand rupees.

As per the budget details of the Ministry of Urban Development, the federal government’s subordinate offices will be implementing a drainage improvement project in Shuklaphanta in Kanchanpur district and an integrated settlement programme in Urlabari, Jhapa, worth Rs500,000 each. Similarly, it has allocated Rs1 million for the protection of Hiranyawarna Mahabihar in Patan and Rs2.5 million for a road improvement project in Katunje, Bhaktapur.

“The government’s commitment has not been reflected in the budget allocation,” said Khim Lal Devkota, a former member of the National Assembly who is an expert in federalism. “The centralised mindset of politicians hasn’t changed yet.”

Ever since the institutionalisation of federalism through the Constitution of Nepal, the provincial and local governments have been demanding that the federal government allow them to implement the small and medium projects. Their demands are based on constitutional obligations.

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