KATHMANDU, June 24: The National Natural Resources and Fiscal Commission has sent a formal request to the Ministry of Finance, urging the latter not to reduce the financial equalization grant to sub-national governments.
In response to the significant negative impact experienced by local communities due to the 50% reduction in the subsidy during the last installment of the current Fiscal Year (FY) 2022/23, the Fiscal Commission issued a circular to the Ministry of Finance emphasizing the importance of maintaining the prescribed subsidy amount.
NNRFC proposes fiscal equalization grant to province, local lev...
Following a memorandum submitted by the National Association of Rural Municipalities in Nepal (NARMIN) and the Municipal Association of Nepal (MuAN) concerning the subsidy reduction, the Commission took prompt action by communicating their concerns to the Ministry of Finance.
The circular drafted by the constitutional commission, states, "In accordance with the powers conferred by the Constitution and the law, the National Natural Resources and Fiscal Commission recommends the allocation of funds from the Federal Reserve Fund to provinces and local levels, aligning with the budget approved by the Federal Parliament for the FY 2022/23. The attention of the Government of Nepal (Council of Ministers) has been drawn to the importance of making necessary arrangements."
Earlier, representatives from NARMIN and MuAN had met with Chairman Bala Nanda Paudel to discuss the matter and handed over a memorandum, urging proactive measures to be taken.
