Nepal, Oct. 11 -- Seventeen local governments borrowed Rs 338.78 million from the Town Development Fund last fiscal year without obtaining the federal government's approval, according to the National Natural Resources and Fiscal Commission.

The commission's eighth annual report, presented to the National Assembly on September 28, states that the 17 local governments mobilized a total of Rs 338.781543 million in internal loans from the Town Development Fund in fiscal year 2025/26.

Some of the local governments had not included the loans in their annual budgets, while none had sought the federal government's consent before borrowing, according to the report.

Section 14 of the Intergovernmental Fiscal Arrangement Act, 2017 requires provi...