Kathmandu, June 8: The federal government has allocated the highest amount of intergovernmental fiscal grants to Karnali and Madhesh provinces for the upcoming FY 2083/84 Bs (2026/27), reflecting their lower development indicators.
According to the Intergovernmental Fiscal Transfer (Province and Local Level), a total of Rs 424.27 billion has been earmarked. Of this, Rs 314.63 billion has been allocated to local governments and Rs 109.65 billion to provinces.
The federal government provides these grants under four categories: equalization, conditional, special, and complementary grants.
Among provinces, Madhesh Province has received the highest allocation of Rs 17.59 billion, followed closely by Karnali Province with Rs 17.20 billion.
Other allocations include Koshi Province receiving Rs 16.47 billion, Bagmati Province Rs 15.21 billion, Lumbini Province Rs 14.41 billion, Sudurpaschim Province Rs 16.01 billion, and Gandaki Province Rs 12.72 billion.
For provinces and local levels combined, the federal government has allocated Rs 61.50 billion in equalization grants, Rs 39.72 billion in conditional grants, Rs 3.82 billion in special grants, and Rs 4.60 billion in complementary grants.
Now, based on this allocation and their own resource mobilization, the province and local bodies prepare their budget for the upcoming FY 2026/27. #nepal
