editThe government on 29 May presented a jumbo-sized budget for the fiscal year 2017/18. The budget worthRs 1278.99 billion is the largest ever budget the nation has seen. The budget has allotted funds for provincial elections and federal elections to be held in the coming fiscal year. Accordingly, after first phase local elections, the government has decided to send the funds directly to the local units. This has also increased the budget size. The government, without evaluating local resources and geography has developed local units which are going to increase the cost burden to the central government as many of the local units cannot meet the necessary administration costs. One local unit is enjoying the power equal to one district along with increased number of the administrative staffers. Therefore, on the one hand, the local residents have to pay tax in every field even though they are not receiving necessary services, on the other, the government has to fund such local units perhaps permanently. Therefore, the budget size in subsidizing such local units will continue to increase. Although the government has claimed about 7 percent of economic growth, other domestic indicators are not satisfactory. The international trade deficit is alarming. The portion of foreign aid/support is higher comparatively to the past budgets. With the expectation that the government would receive foreign support, the budget has been prepared. It makes clear that federalism has increased the expenditure of the nation and the government. The nation is suffering from the disease of incapacity of spending the allotted development budget. This year also, the government projects were unable to meet the target of spending the development budget. Whether the government will be able to spend the development budget in the next fiscal year, it is not clear yet. The only thing is that in spite of doubts on a timely budget, the budget for the new fiscal year has been presented on the said date. As we know, the budget has been presented by a caretaker government, new programmes have not been included in the budget.