Ordinances issued in Koshi to end ‘budget holiday’

The Koshi Province Government has put an end to the ‘budget holiday’ situation in the province by introducing legislation for government spending through an ordinance.

Province Chief Parshuram Khapung on Sunday issued the Financial Ordinance and Appropriation Ordinance on the recommendation of the provincial cabinet. Hikmat Kumar Karki of CPN-UML was appointed as the Chief Minister of the province on Friday, following a mandamus order from the Supreme Court. He has already appointed three ministers and a minister of state to his cabinet.

The newly-appointed Minister for Water Supply, Irrigation, and Energy, Til Kumar Meyangbo, said that the provincial government has resolved the situation of budget vacuum in the province by bringing legislation to mobilize revenue and make expenditures through ordinances. Earlier, the Karki-led government had issued a budget through an ordinance. He had proposed to spend Rs 36.24bn, with Rs 14.39bn allocated for recurrent spending and Rs 18.23bn for capital expenditures. However, the ordinance couldn’t be replaced by an Act from the provincial assembly, as Karki lost a confidence vote in the provincial assembly on June 30.

Karki was succeeded by Uddhab Thapa of Nepali Congress as the chief minister a week later. However, the Supreme Court removed Thapa from office on July 27, as he had relied on the support of Speaker Babu Ram Gautam to form his government. Speaker Gautam had previously introduced a replacement bill in the provincial assembly, but no discussion on the bill could take place as Thapa recommended to the Province Chief to prorogue the budget session.

Gautam later resigned as Speaker to pave the way for formation of government under Thapa’s leadership for the second time on August 1. However, he was once again removed by the Supreme Court on Sept 7. Nepali Congress assembly member Israil Mansuri, who was chairing the session in the absence of Deputy Speaker Sirjana Danuwar, had given a vote of confidence to Thapa. The apex court declared the confidence vote unconstitutional and ordered the Province Chief to form a government under the leadership of the largest party in the provincial assembly. Karki returned to power in Koshi Province on the basis of the Supreme Court order. The budget, which was initially brought through an ordinance, should have been passed by introducing a replacement bill by Aug 27. Since that did not happen, a situation of budget holiday arose in the province.

Ten ordinances issued in six years

As many as 10 ordinances have been issued in Kosi Province over the past six years. In both terms of the provincial assembly, political parties have bypassed the assembly to enact legislation through ordinances to serve their interests. In most cases, governments have resorted to ordinances due to their failure to secure majority support for legislation. The constitution allows governments to use ordinances only in situations where the provincial assembly cannot convene. However, there are instances of parties issuing ordinances by proroguing the session of the provincial assembly. On the government’s recommendation, the province chief issued two ordinances on Sunday. After the ordinance brought for the 2023/24 fiscal year was not passed by the provincial assembly and became inactive, the government was compelled to issue another ordinance to end the budget vacuum.

Former Chief Minister Sherdhan Rai first issued the Province Financial Procedures First Amendment Ordinance, 2018, on May 23, 2018. Rai then issued the Province Financial Procedure Second Amendment Ordinance, 2078, on June 2, 2021. Another Chief Minister, Rajendra Kumar Rai, issued the Province Civil Service Ordinance, 2022, and the Ordinance to Amend Some Acts, 2022, on September 27, 2022. Hikmat Kumar Karki issued the Local Service Formation and Operation Ordinance, 2023, and the Province Civil Service Act First Amendment Ordinance, 2023, on April 27, 2023 in his first term as the chief minister.