NPC invites proposals for fiscal equalisation and special grants for next FY

KATHMANDU: National Planning Commission (NPC) has invited proposals for projects and programmes under the federal fiscal equalisation and special grants for the fiscal year 2025/26. The deadline for detailed submissions from provincial and local governments is February 27.

Due to the National Development Problem Solving Committee's directive, there was a delay in inviting proposals. NPC Assistant Spokesperson Dibakar Luitel said, “Proposals for grants were invited as soon as the revised procedures were implemented. The previous arrangement, where the federal government contributed 50% of the supplementary grant and the remaining 50% was borne by provincial and local levels, has been amended to a range of 20% to 80%.”

The Special Grants Procedure, 2081, outlines the cost range for eligible projects. The rural municipalities or municipalities must submit projects costing between Rs 2.5 million and Rs 30 million. Likewise, sub-metropolises and metropolises must submit projects costing between Rs 2.5 million and Rs 50 million while Provincial projects should range from Rs 50 million to Rs 100 million. Infrastructure projects must be completed within three years, while other programmes should be completed annually.

Under the Supplementary Grants Procedure, 2081, rural municipalities or municipalities can request grants for projects costing between Rs 10 million and Rs 70 million. Sub-metropolises and metropolises can submit projects costing between Rs 30 million and Rs 150 million, and provincial proposals should range from Rs 100 million to Rs 300 million.

Luitel said the proposals must be submitted through the online system, accompanied by detailed documents. “Proposals not following the prescribed procedures will not be eligible for grants,” he said. To receive grants, submissions must include a detailed cost estimate, feasibility studies, drawings, designs, and environmental study reports. Grant requests must be approved by the relevant local executive and the provincial government's council of ministers, based on recommendations from the provincial planning commission.

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