Budget 2024/25: Rs 567 billion to be transferred to subnational governments

KATHMANDU: A total of Rs 567 billion is estimated to be transferred to subnational governments in fiscal year 2024/25.

Presenting the budget for 2024/25 in a joint session of the federal parliament on Tuesday, the Minister for Finance said Rs 60 billion and Rs 88 billion have been allocated to provincial governments and local units, respectively, under fiscal equalization grants.

The allocations have been made as per the recommendations of the National Natural Resources and Fiscal Commission, Minister Pun said.

Similarly, Rs 25.84 billion and Rs 208.88 billion have been allocated to provincial governments and local units, respectively, under conditional grants to implement infrastructure projects. Additionally, Rs 4.40 billion and Rs 8.5 billion have been set aside for provincial governments and local units, respectively, under special grants.

Minister Pun estimates that Rs 567 billion will be transferred to local levels and provinces in the upcoming fiscal year through revenue sharing and grants.