The federal government has allocated the highest amount of fiscal transfers to Karnali Province and the lowest to Gandaki for the upcoming fiscal year 2025/26, according to the Intergovernmental Fiscal Transfer Report.

Out of the total Rs 97.65 billion earmarked for provinces, Karnali will receive Rs 16.04 billion, while Gandaki is set to get Rs 12.23 billion. The other provinces will receive the following allocations: Koshi Rs 14.50 billion, Sudurpaschim Rs 14.20 billion, Lumbini Rs 14.01 billion, Bagmati Rs 13.81 billion, and Madhesh Rs 12.73 billion.

At the local level, the federal government has allocated a total of Rs 320.26 billion. Of this, metropolitan cities will receive Rs 11.74 billion, sub-metropolitan cities Rs 11.38 billion, municipalities Rs 143.10 billion, and rural municipalities Rs 154.02 billion.

The breakdown of fiscal transfers includes Rs 149.62 billion in equalization grants and Rs 241.80 billion in conditional grants to both provinces and local governments. In addition, Rs 13.34 billion has been allocated as supplementary grants and Rs 13.04 billion as special grants.

RSS

Click   here   to see out budget 2025/26 coverage.