KATHMANDU: Sudurpashchim Province has entered a budget holiday with the start of the new fiscal year 2026/27 after the provincial assembly failed to pass the proposed Rs 37.70 billion budget.

The government, led by Chief Minister Kamal Bahadur Shah, was reduced to a minority following the withdrawal of support by the CPN (UML) and could not even bring an advance budget via ordinance.

While the Provincial Comptroller General’s Office confirmed that government expenditure is now completely halted, revenue collection will continue uninterrupted under last year’s laws.

This marks a repeat of a similar political crisis from FY 2024/25, when the province faced a two-month budget vacuum until a second budget was eventually passed.