Rs 567 billion budget for provincial and local governments

Kathmandu, May 28: The federal government is to allocate 567 billion rupees to the provincial and local governments in the coming financial year 2024/25. This will be made through fiscal transfer and revenue sharing from the federal budget.     

According to the budget statement read out by Finance Minister Barsh Man Pun in the Parliament today, on the recommendation of the National Natural Resources and Fiscal Commission (NNFRC), the federal government has allocated Rs 60 billion for the provinces and Rs 88 billion for the local level towards the fiscal equalization grants.     

Likewise, a conditional grant worth Rs.25.84 billion has been earmarked for the provinces and Rs.28.88 billion for the local level.     

Another 6.2 billion rupees have been allocated to the province and 7 billion rupees to the local level towards supplementary grants. In addition, 4.4 billion rupees have been allocated for the province and 8.5 billion rupees for the local level as special grants.     

Finance Minister Pun noted that arrangements will be made to transfer conditional, supplementary and special grants based on performance. The government estimates that 159 billion rupees will be transferred to the provincial and local levels as part of revenue sharing. (RSS)