582.83 Billion Rupees Allocated to Provincial and Local Levels for Fiscal Year 2082/83
May 29, 2025 | Investopaper
For the upcoming fiscal year 2082/83 (2025/26), the federal government has announced plans to transfer 582.83 billion rupees to provincial and local governments through financial transfers.
Finance Minister Bishnu Prasad Paudel, presenting the budget for the upcoming fiscal year in a joint session of the federal parliament, stated that this amount will be allocated to provinces and local levels through revenue sharing and grants.
Based on the recommendations of the National Natural Resources and Fiscal Commission, 60.66 billion rupees will be transferred to the provinces and 88.97 billion rupees to local levels under the financial equalization grant. For conditional grants, 30.35 billion rupees have been allocated for provinces and 211.46 billion rupees for local levels, totaling 241.81 billion rupees.
Additionally, for infrastructure project implementation, a complementary grant of 3.28 billion rupees has been allocated to provinces and 10.06 billion rupees to local levels. Under special grants, 3.27 billion rupees have been designated for provinces and 9.78 billion rupees for local levels. Finance Minister Paudel also noted that conditional, special, and complementary grants will be transferred based on performance.
During the budget speech, Finance Minister Paudel estimated that 165 billion rupees would be transferred to provincial and local levels through revenue sharing in the upcoming fiscal year. Thus, the federal government is projected to transfer a total of 582.83 billion rupees to provinces and local levels through financial transfers and revenue sharing in the upcoming fiscal year.
