Government to Transfer Over Rs 600 Billion to Provincial and Local Governments

Kathmandu — Presenting the details of fiscal transfers under Article 60 of the Constitution of Nepal, Finance Minister Dr. Swarnim Wagle has announced that more than Rs 600 billion will be channelled to provincial and local governments in the upcoming fiscal year.

Wagle said that, as per the recommendation of the National Natural Resources and Fiscal Commission, arrangements have been made to provide fiscal equalisation grants of Rs 61.50 billion to provinces and Rs 90.20 billion to local governments in the fiscal year 2083/84.

The Finance Minister said matching grants of Rs 4.60 billion and Rs 8.93 billion have been provided to provinces and local governments respectively for implementing infrastructure projects. He said special grants of Rs 3.82 billion and Rs 9.40 billion have also been set aside for provinces and local governments respectively.

He said conditional grants of Rs 39.72 billion and Rs 206.08 billion have been allocated to provinces and local governments respectively for the implementation of federal government projects.

Wagle said an estimated Rs 175 billion in total will be transferred to provincial and local governments through revenue sharing.

The Finance Minister said he has projected that more than Rs 600 billion will be channelled to provincial and local governments in the upcoming fiscal year through revenue sharing (including royalties) and fiscal transfers.