KATHMANDU, April 28: Due to increasing pressure on government finances, the government has cut 50 percent of the third installment of the financial equalization grants to be provided to the provincial and local governments.
The federal government will provide them with only Rs 23 billion after cutting Rs 23 billion out of the Rs 46 billion allocated for the purpose earlier.
Govt reduces fiscal equalization grant by Rs 317.4 million in M...
A Council of Ministers meeting held on April 25 decided to cut the amount by 50 percent and send only 50 percent of the amount for financial equalization.
On April 27, the Ministry of Finance wrote to the Office of the Financial Comptroller General, asking it to transfer only 50 percent of the third installment of the financial equalization grant to the local governments and provinces in the current financial year.
According to Sub-section (3) of Section 4 of the Financial Equalization Grant Allocation Act, 2079 BS, the final installment to be transferred in the financial year 2079/80 BS is Rs 9.94 billion to the provinces and Rs 13.20 billion to the local governments.
