The National Planning Commission (NPC) has invited proposals from local and provincial governments for projects to be funded through federal grants in Fiscal Year 2025/26. These projects will be implemented under federal supplementary and special grants. According to NPC officials, the proposals must justify the need for the project in line with the Supplementary Grant Procedure, 2024 (2081) and Special Grant Procedure, 2024 (2081). The new procedures classify local and provincial governments based on economic activity, with municipalities and provinces with lower economic activity receiving a higher percentage of grants.

Proposals must be submitted by an authorized official along with a certification form confirming compliance with the requirements. For provincial projects, a recommendation from the provincial planning commission is required, along with prioritization. For local-level projects, the executive body must approve and prioritize the proposal. The commission has emphasized that ongoing projects funded by federal supplementary and special grants should be given priority.

The priority areas for supplementary grants include agricultural infrastructure, waste treatment and management, drinking water and sanitation, irrigation and river control, educational infrastructure, tourism infrastructure, intermediate zone development, energy, science, and technology infrastructure, as well as health and road infrastructure. Meanwhile, special grants will focus on improving education and basic health services, providing drinking water and sanitation for Dalits, endangered groups, and marginalized communities, increasing production, productivity, and income opportunities for economically and socially disadvantaged groups, disaster risk reduction and reconstruction of public infrastructure, model housing for endangered and marginalized communities, and integrated settlement development and relocation of vulnerable settlements.

Proposals must be submitted through the electronic system at the provincial or local level. Along with the proposal, applicants must provide details on the project's necessity, expected benefits, sustainability, and the financial and human resources required for implementation.

Speaking at a press conference last week, National Planning Commission Vice Chairman Prof. Dr. Shivaraj Adhikari stated that the grant coordination process had been revised due to past discriminatory practices. He noted that the previous special grant procedures did not align with the constitution and legal framework, prompting amendments to improve service quality at the local and provincial levels.