Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The National Planning Commission (NPC) has invited proposals for projects and programs to be implemented under complementary and special grants in collaboration with provincial and local governments.
Introducing a new set of guidelines to replace the previous ones, the commission has set March 27 (15th Falgun) as the deadline for submitting proposals. These projects will be executed in the fiscal year 2082/83 (2025/26) under the Federal Complementary Grant and Federal Special Grant programs.
Revised Grant Distribution Based on Revenue-Generating Capacity
For the first time, the NPC has categorized provinces and local levels based on their revenue collection capacity, leading to a differentiated grant distribution system. Previously, all local governments, regardless of their financial strength, received 50% of the grant from the federal government.
Under the new framework:
Financially weaker local governments will receive 80% of the complementary grant, while Stronger local governments will receive only 20% of the grant.
Additionally, the NPC has prioritized the continuation and completion of ongoing projects that previously received complementary and special grants but remain unfinished. Local and provincial governments are required to submit proposals accordingly.
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