Members of the Madhes Provincial Assembly have accused the government of allowing middlemen to dominate the fiscal year 2025/26 budget. Lawmakers from both ruling and opposition parties claim the budget was influenced by external forces and is not people-oriented, with excessive manipulation by intermediaries.
The assembly has not held proper discussions on the budget, as six opposition parties have continued to protest, demanding a rewrite. On Monday, lawmakers obstructed the session, forcing its adjournment to Tuesday. In June, a budget meeting was abruptly announced just an hour before it was to be held. After an 11-day break, a session was held on Sunday but again adjourned due to joint protests by Janata Samajwadi Party Nepal (JSPN), CPN (Maoist Center), CPN (Unified Socialist), Nepal Sanghiya Samajbadi Party, Nagarik Unmukti Party, and Rastriya Prajatantra Party (RPP).
“Looking at the budget book, it’s evident that the plans were prepared by middlemen,” said Ram Ashish Yadav, chief whip of JSPN. “This year’s budget is deliberately skewed, impractical, and guided by intermediaries. It offers no direction for the province. One example is a 20-year-old project listed in the red book under the name of the Chief Minister’s father, for which Rs 18m has been allocated.”
The red book for 2025/26 shows that Chief Minister Satish Singh has allocated Rs 18m for an unfinished girls’ hostel initially funded by the Indian Embassy. The project, located at Mahendra Bindeshwari Multiple Campus in Rajbiraj, Saptari, was launched in 2005 under the chairmanship of Singh’s father, Shekhar Kumar Singh. Despite receiving Rs 19.6m from the Indian Embassy, the hostel remains incomplete two decades later.
“This budget lacks priorities, principles, and is entirely unprecedented,” said Ram Saroj Yadav, a Nepali Congress leader in the provincial government. “The Chief Minister publicly promised to exclude projects below Rs 10m, and the Finance Minister pledged not to include those below Rs 5m. Yet, the red book is full of such projects. It contradicts the very commitments made by our leadership. There’s no doubt the budget is influenced by middlemen.”
The provincial government has presented a budget of Rs 46.58bn for 2025/26. Notably, the Ministry of Sports and Social Welfare has allocated Rs 3m across two schemes named after Indian godman Asaram Bapu, who is serving a life sentence in India for raping a minor.
“There are serious disparities in project allocations,” said Sunita Yadav, a CPN (Maoist Center) lawmaker. “If this is truly a provincial budget, all MPs should have ownership. But here, middlemen override the MPs’ recommendations. We demand a complete rewrite of the budget—otherwise, we will not allow the Assembly to function.”
This is not the first controversy surrounding the budget in Madhes. In July last year, the 2024/25 budget was mired in scandal after allegations surfaced that outsiders had obtained a secret Finance Ministry password and inserted unauthorized projects into the red book—ignoring MPs’ recommendations. A parliamentary committee was formed with a pledge to investigate the breach. However, no investigation has taken place, and the individual behind the password leak remains unidentified.
Chief Minister Singh has acknowledged some errors in the budget but denied the involvement of middlemen. “We’ve repeatedly invited opposition parties for dialogue,” he said. “I want to assure the public that this budget is transparent.”
