Politics
Budget passed amid criticism from both ruling and opposition lawmakers
They criticise the budget for lacking balance and serving the interests of certain leaders’ constituencies.
Post Report
While opposition parties, as well as some leaders from the ruling coalition, have accused the government of presenting a lopsided budget for the fiscal year 2025-26 alleging that it is focused primarily on the home districts of some leaders, Prime Minister KP Sharma Oli has denied such claims.
Responding to questions raised during Tuesday’s session of the House of Representatives regarding the budgets allocated to the Office of the Prime Minister, the President, the Vice President, and others, Oli asserted that the budget aimed to balance development works across the country.
“I would like to emphasise that the budget presented by the government is comparatively balanced, equitable, and result-oriented,” Prime Minister Oli said. “It has been designed to ensure balanced development based on geographical, regional, and thematic needs and considerations.”
Oli, however, stated that due to the dearth of resources, the budget could not satisfy the wants of all lawmakers. He pledged that efforts will be made in the future to address their grievances.
“We need rapid development across many areas, but the budget is limited. Therefore, it is natural that not all lawmakers can be satisfied with the allocation. Efforts will be made to address the imbalance between demand and supply in the coming days,” Oli said.
“We are in need of investments. For that, we must bring in both private sector and foreign investments,” Oli added.
Earlier, expressing their views, even lawmakers from ruling parties had criticised the budget for lacking balance and being tailored to appease the constituencies of some leaders. They argued that the budget fails to address the broader needs of the country as a whole.
At Sunday’s discussion, Congress lawmaker Arjun Narsingh KC had expressed his frustration over an unequal distribution of the budget. He called for the formation of a parliamentary committee to investigate whether the budget allocations had been appropriate.
Similarly, CPN-UML lawmaker Surya Thapa voiced his discontent over the allocation of budget under headings named after Ganesh Man Singh, criticising Deputy Prime Minister and Minister for Physical Infrastructure and Transport Prakash Man Singh—who is also a Congress leader. Ganesh Man, a former Congress leader and father of Deputy PM Singh, led the people’s movement in 1990.
Despite criticism, the House of Representatives on Tuesday passed the Rs1.96 trillion budget for the fiscal year 2025/26.
The appropriation bill-2025, presented in Parliament by Finance Minister Bishnu Paudel, was approved by a majority vote during Tuesday’s House session. Discussion on the budget was delayed due to the opposition parties’ obstruction of the House demanding a committee to investigate the visit visa scam.
Congress lawmaker KC remarked that Nepal’s parliamentary system has no tradition of addressing lawmakers’ voices in an apt manner.
“The budget was bound to pass, as the two major parties command a vast majority in the House. But the real question is whether the concerns raised by lawmakers were addressed,” KC told the Post.
Likewise, responding to questions about the national budget, Prime Minister Oli stated that the “take and pay” provision was removed out of concern that it might affect the country’s energy sector.
Oli made this remark in response to a question raised by a lawmaker in Tuesday’s House meeting, asking why the “take and pay” provision was included in the budget and then withdrawn.
The budget for the upcoming fiscal year, unveiled on May 29, stated that Power Purchase Agreements (PPAs) for run-of-the-river (RoR) projects developed by the private sector would be made only under the “take and pay” modality.
This provision sparked criticism and concerns that it placed private sector investments in hydropower at risk and discouraged further investment in the sector.
On Monday, Congress President Sher Bahadur Deuba had urged Prime Minister Oli and Finance Minister Bishnu Paudel to remove the provision.
Prakash Sharan Mahat, who is both a Member of Parliament and spokesperson for the Congress, said that the government backed down from the “take and pay” provision in the budget after party president Deuba took a firm stance and strongly urged the prime minister and the finance minister to remove it from the budget.
Responding to questions about the budget, Prime Minister Oli on Tuesday also proposed constitutional amendments to address difficulties seen in the charter’s implementation. He says that such amendments are necessary to make the democratic system more effective, to accelerate the pace of development, and to foster greater national unity.
Although the prime minister called for an amendment to the constitution, the incumbent government has made no move over the past year towards this goal. One of the key points in the seven-point agreement reached during the formation of the coalition between the Congress and UML last year was precisely the issue of constitutional amendment.
Congress spokesperson Mahat, however, claims that the coalition government is actively engaged in the process of constitutional amendment. He maintains that, aside from a few unalterable provisions enshrined in the constitution, other areas can be amended, and that the government is working in that direction.
“This is not something that can happen overnight; we are committed to giving concrete shape to constitutional amendments,” Mahat told the Post.
Meanwhile, Prime Minister Oli also made it clear that he will not make any compromises on democracy and the constitution. While he expressed his tolerance for personal criticism, he firmly stated that he would not tolerate any disrespect towards the constitution.
Oli said that the constitution could be amended to strengthen democracy and uphold national unity. However, he urged members not to make comments that would demean the constitution.
“I can endure criticism, opposition, and even insults directed at me personally,” Prime Minister Oli said. “But I cannot accept insults towards the constitution, the sacrifices made, the struggles of the past, the system we have embraced, and the principles we uphold.”
Oli also urged the lawmakers to exercise restraint while speaking on such matters.