Budget for FY 2024/25: Govt plans to allocate Rs 567bn to the provincial, local govts
KATHMANDU: The federal government plans to allocate Rs 567 billion to the provincial and local governments in the forthcoming fiscal year 2024/25.
This will be achieved through fiscal transfer and revenue sharing from the federal budget.
As per the budget statement presented by Finance Minister Barsha Man Pun in today's joint session of Parliament, the federal government has allocated Rs 60 billion for the provinces and Rs 88 billion for the local level as fiscal equalisation grants, based on the recommendation of the National Natural Resources and Fiscal Commission (NNFRC).
Additionally, a conditional grant of Rs 25.84 billion has been earmarked for the provinces and Rs 28.88 billion for the local level. A supplementary grant of Rs 6.2 billion has been allocated to the province and Rs 7 billion to the local level. Furthermore, a special grant of Rs 4.4 billion has been allocated for the province and Rs 8.5 billion for the local level.
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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