Recently awarded metropolitan city status, Birgunj is having a hard time paying its construction bills and office expenses. The trade and industrial hub on the Indian border is the only metropolitan city in Province 2.

Birgunj is going through a financial crisis as the bills have been piling up for years. Development activities under new projects are yet to start due to a shortage of funds, and the city has not been able to pay the salaries of its employees on time.

Birgunj Mayor Bijay Sarawagi has been openly speaking about the city’s money problems at public programmes. Having built an image of a successful entrepreneur, Sarawagi started his term with a lot on his plate. “I have inherited liabilities totalling Rs250 million from my predecessors. There is hardly any money, and how am I supposed to carry out development?” he said at a public programme. The city got a mayor and elected representatives after nearly two decades. A big challenge the city fathers are facing is addressing concerns of development and prosperity besides launching initiatives for a clean, fresh, green, managed and development-oriented city. Citizens of Birgunj become dejected when hearing such disappointing statements from their mayor at public functions. Local youth leader Dilip Raj Karki said, “We elected a mayor after two decades, but he has been making disappointing remarks instead of steering the metropolis towards the path of development and prosperity. It is unbecoming of him to make us feel gloomy. Rather, he should come up with novel ideas to increase the budget if the city coffers are empty, and work to uplift the metropolitan city by working with the private sector.”

Damodar Yadav, a resident of Harpatjung in Ward 20, complained that the people of Birgunj had felt no change even after 100 days since they elected new representatives. “What place has no deficiency and problems? Representatives who have pledged to shoulder the burdens of the metropolitan city should demonstrate their proficiency by solving challenges and problems,” he said. Most residents of the metropolis have complained that the city needs to increase the speed of work to improve the image of Birgunj, which is often known as a city of waste, foul smell and mosquitoes. They also complain that broken roads are lying unrepaired and dilapidated drains are yet to be fixed. Their first priority is addressing the mismanagement and pressing concerns.

Mohan Thapa, a central member of the Municipal Employees Association Nepal and head of its Birgunj Chapter, expressed surprise at the high cost of addressing the increasing responsibilities of the metropolis. He said that the city needed Rs20-30 million to take care of urgent tasks.

“Responsibilities are piling up on the mayor’s shoulders who has been elected to the post after a long time. Even if the mayor wishes to launch new development projects, he is not in a position to do so,” said Thapa.

Thapa also expressed dissatisfaction over the old style and manner of running the metropolitan city. He said, “As the metropolitan city has become big, so has its responsibilities. About 17-18 years ago, the office had 775 employees. Today, there are only 600 staff. How can one expect to be able to function in this situation? The office is almost paralyzed.”

Mayor Sarawagi said that the metropolitan city’s expenses exceeded its income. He added that Birgunj’s revenue was at the same level as that of a sub-metropolitan city.

He complained that government grants to Birgunj had not increased from past years even though it had been declared a metropolitan city. The government has been providing the same amount of grant that it issues to a sub-metropolitan city. This has resulted in a deficit of about Rs110 million this year, he said.

The mayor added that he had written to the Ministry of Federal Affairs and Local Development demanding adequate funds.

“Right now, we are able to carry out only extremely important repair works. Old projects have been given continuity, but no new initiative has been launched. The metropolitan city needs to provide Rs130 million in matching funds for the development activities conducted by the Asian Development Bank (ADB),” he said.

According to Sarawagi, Birgunj has been forced to wait for the next fiscal year to initiate developmental activities expected by the public. He said that the office faced the added responsibility of providing matching funds for the ADB’s second round project which will soon be starting.

Sarawagi claimed that despite the complexity and hardship, he was still trying to manage new revenue sources for Birgunj. He said, “We are preparing proposals to explore new revenue sources. I am making my best efforts to mobilise funds internally.”