The planning commission claims that the procedures related to supplementary and special grants have been amended to ensure fair allocation between local levels and the autonomy of local levels.
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The government has revised the procedures related to supplementary and special grants to the state and local levels. The National Planning Commission has informed that the procedure has been revised to increase the quality of service at the local level and the state.
In a press conference on Thursday, the commission has informed that the subsidy limit going to local and provincial governments has been reduced by revising the procedures related to supplementary and special grants.
By revising the procedures related to supplementary and special grants, the government has reduced the maximum limit that local and state governments can propose for projects implemented with supplementary grants. The government has abolished the old procedure and introduced a new procedure, which has reduced the maximum cost limit . For the supplementary grant, the total cost of the project/program to be implemented by the rural municipality/municipality is between 10 million to 100 million rupees, and the limit of 10 million to 70 million rupees has been fixed by revising the procedure.
It has been arranged that the total cost of the project program to be implemented by the sub-metropolitan city and the metropolis will be reduced from 50 million to 250 million and it can be proposed for projects of 30 million to 150 million .
In the case of the provincial government, the system in which projects costing between 200 million and 1 billion rupees can be proposed has been amended and now a procedure has been made to ask for supplementary grants only for projects between 100 million and 300 million rupees. Prada Shivraj Adhikari, vice president of the commission, said that since supplementary and special grants are discriminatory, the Ministry of Finance Gave information about the change in coordination.
'Each local level local government internal revenue potential index was prepared and sorted from small to large size index . After sorting in this way, seven change points were detected by statistical methods. The federal government will contribute 80 percent to the weak level,' he said, 'in the case of the local level in the second strongest level, the association has to bear 30 percent and the local level has to bear 70 percent . We have paid special attention to financial federalism. The municipality will gradually become self-sufficient in terms of resource management. 80 percent of the city's resources were seen. The central government will give him 20 percent, which means that the local level has become financially strong.'
The new procedure has also set a limit that a province can propose a maximum of 10 projects and a local level can propose a maximum of three projects and programs. The government has now classified the local level on the basis of internal revenue collection, state of prosperity, concentration of industry and revenue mobilization index.
According to the commission, the share has been determined by classifying the local level into seven levels.
