Request the municipality to give budget and royalty based on geography

Poush 29, 2081

Request the municipality to give budget and royalty based on geography

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People's representatives of Solukhumbu and Ramechhap have demanded to give budget to the local government based on geography and to increase the royalty. In the gathering of suggestions for the review of the distribution of royalty money held by the National Natural Resources and Finance Commission for the people's representatives of the two districts, they demanded that the local government should receive 50 percent of the royalty from natural resources.

In the program held in the presence of Commission Chairman Balanand Paudel, members Bipinraj Niraula and Juddha Bahadur Gurung, the people's representative stressed that the geography of the local level in Himalayan and mountain districts is large and development infrastructure needs to be extended to all areas, so the budget should be determined on the basis of geography and not on the basis of population.

District Coordinating Committee Chief Krishna Prasad Niraula demanded to send at least 50 percent of the amount to the local level while reviewing the royalties raised for natural resources. Currently, the Finance Commission has been distributing 50 percent of the royalties to the Union and 25-25 percent to the state and local levels respectively. 

Namgeljangbu Sherpa, mayor of Solu Dudhkunda Municipality, said that financial federalism is not properly implemented and there is a difference in the current resource distribution. He suggested that there should not be the same criteria for sending grants to Kathmandu Metropolis and Solukhumbu Municipality.

President of Thulung Dudhkoshi Rural Municipality, Asim Rai, also objected that grants should be given on the basis of geography and that the state is increasing conditional grants and reducing generalization grants. President Rai emphasized that the royalties of tourism and hydropower should be distributed equally to all local levels of the district. 

Nechasalyan rural municipality chairman Dhanjan Rai said that the state has done extreme injustice in resource allocation. Surya Bahadur Kulung, Chairman of Mahakulung Rural Municipality, demands that all the 8 municipalities of the district should get the royalty of the mountains including Mount Everest, the highest peak in the world.

According to Sher Bahadur Sunuwar, Chairman of Umakunda Rural Municipality of Ramechhap, more than half of the royalty should be given to the local level as the local government has the responsibility to protect and conserve natural resources.

Lakpa Gelzen Sherpa, executive member of Khumbu Pasangalhamu rural municipality, said that the conditional grant is not practical. Former Chief Secretary of the Federal Government, Somlal Subedi, insisted on reviewing the arrangement of the conditional grant as the needs and plans of the local government were not included.

Intergovernmental Finance Management Act 2074 provides for revising the royalty and revenue distribution criteria every 5 years, said Finance Commission Chairman Balanand Paudel. He said that he will take the initiative to reduce the subsidy on the condition of arranging the distribution of royalty based on the need of expenditure. 

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