Under the budget presented by Finance Minister Swarnim Wagle today, Rs 61.5 billion has been allocated for the provinces and Rs 90.2 billion for the local levels towards fiscal equalization grants for 2083/084, as recommended by the Natural Resources and Finance Commission.

The budget has increased in some headings compared to the current year and decreased in others. For the current year, 60 billion rupees were allocated for the provinces and 88 billion rupees for the local level towards equalization grants. The budget has made provision to provide 4.6 billion rupees for the provinces and 8.93 billion rupees for the local level as complementary grants to implement infrastructure development projects at the provincial and local levels for the coming year. For the current year, 3.28 billion rupees were allocated to the provinces and 10.6 billion rupees to the local level to implement infrastructure plans at the provincial and local levels towards complementary grants for infrastructure development.

Similarly, the federal government will provide 3.82 billion rupees for the provinces and 9.40 billion rupees for the local level for the coming year. In the current fiscal year, 3.27 billion rupees were allocated for the provinces and 9.78 billion rupees were allocated for the local level as special grants.

In the coming year, 39.72 billion rupees have been allocated to the provinces and 26.8 billion rupees to the local levels as conditional grants for the construction of federal government projects. It is estimated that 175 billion rupees will be transferred to the provinces and local levels through revenue sharing. The budget has set a target of mobilizing more than 600 billion rupees to the provinces and local levels through revenue sharing (including royalties) and financial transfers in the coming fiscal year.