KATHMANDU: The federal government is to allocate Rs 567 billion to the provincial and local governments (PLGs) 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 Barshaman 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, conditional grant worth Rs 25.84 billion has been earmarked for the provinces and Rs 28.88 billion for the local level.
Another Rs 6.2 billion have been allocated to the province and Rs 7 billion to the local level towards supplementary grants.
In addition, Rs 4.4 billion rupees have been allocated for the province and Rs 8.5 billion for the local level as special grant.
Finance Minister Pun noted that arrangements will be made to transfer conditional, supplementary and special grants based on performance.
The government estimates that Rs 159 billion will be transferred to the provincial and local levels as part of revenue sharing.
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