The federal government is to allocate Rs567 billion to the provincial and local governments in the coming financial year 2024-25. This will be made through fiscal transfer and revenue sharing from the federal budget.

According to the budget statement read out by Finance Minister Barsh Man Pun in the Parliament today, on the recommendation of the National Natural Resources and Fiscal Commission, the federal government has allocated Rs60 billion for the provinces and Rs88 billion for the local level towards the fiscal equalization grants.

Likewise, a conditional grant worth Rs25.84 billion has been earmarked for the provinces and Rs28.88 billion for the local level.

Another Rs6.2 billion has been allocated to the province and Rs7 billion rupees to the local level towards supplementary grants. In addition, Rs4.4 billion has been allocated for the province and Rs8.5 billion for the local level as a special grant.

Finance Minister Pun said that arrangements will be made to transfer conditional, supplementary and special grants based on performance. The government estimates that 159 billion rupees will be transferred to the provincial and local levels as part of revenue sharing.