KATHMANDU: President of the Municipal Association of Nepal, Bhim Prasad Dhungana, has expressed disappointment over the federal government’s decision to reduce the equalization grant allocated to local governments in the upcoming fiscal year’s budget.
Dhungana told Khabarhub that although local governments form the foundation of federalism, the budget has once again reduced the amount of equalization grant they are entitled to receive.
“The financial equalization grant we are supposed to get has been reduced,” he said. “Local governments are the very foundation of federalism, but this grant is cut every year.”
Despite this, Dhungana welcomed some aspects of the budget, including the federal government’s decision to refrain from running projects below Rs 30 million in scale, and the continuation of programs such as mid-day meals for students, grants to schools, and support for drinking water initiatives.
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