Decline in Internal Income of Jumla's Local Governments Revealed in Auditor General's Report

The 61st annual report of the Office of the Auditor General has revealed a significant decline in internal revenue sources for eight local governments, including seven rural municipalities in Jumla. According to the report, Chandannath Municipality, the district's sole municipality, had projected an annual income of NPR 25 million for the fiscal year 2079/80 BS but managed to raise only NPR 12 million.

Chandannath Municipality's revenue collection encompassed taxes, service charges, business activities, vehicle fees, integrated property taxes, house and land rental services, and land map approval fees under various categories.

Tila Rural Municipality reported an internal income of NPR 1.89 million. Despite having the authority to collect business taxes from entrepreneurs within its jurisdiction as per Section 58 of the Local Government Operation Act, 2074 BS, Tila has been unable to collect any business tax.

Similarly, Sinja Rural Municipality generated NPR 1.34 million in the last fiscal year. Tirtha Bahadur Kathayat, Chief Administrative Officer of Tatopani Rural Municipality, disclosed that their internal income exceeded the estimated amount by NPR 3.099 million, marking a 54.99 percent increase. Guthichaur Rural Municipality raised NPR 1.86 million, Hima Rural Municipality NPR 1.65 million, and Kanaka Sundari Rural Municipality NPR 1.825 million.

Nar Rokaya, a resident of Tila Rural Municipality, criticized the local governments for their lack of focus on income generation, despite the legal provision allowing local levels to collect nine different types of taxes.

The diminishing revenue-generation capacity has left these local governments heavily reliant on grants from the federal and provincial governments. The report underscores the urgent need for these local governments to enhance their revenue collection mechanisms and reduce dependency on external funding.