Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The third installment of the financial equalization grants to be given to the provincial and local governments has been reduced by 50% due to mounting pressure on government finances.
After subtracting Rs 23 billion from the earlier allocated Rs 46 billion for the purpose, the federal government will only give them Rs 23 billion.
The amount would be reduced by 50% and only 50% of the money would be sent for financial equalization, according to a decision made by the Council of Ministers on April 25.
In a letter dated April 27 and addressed to the Office of the Financial Comptroller General, the Ministry of Finance requested that only half of the third payment of the financial equalization grant be distributed to the provinces and local governments during the current fiscal year.
The final installment to be distributed in the fiscal year 2079/80 BS is Rs 9.94 billion to the provinces and Rs 13.20 billion to the local governments, in accordance with Subsection (3) of Section 4 of the Financial Equalization Grant Allocation Act, 2079 BS.
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