Kathmandu, Sept. 14 -- Tilagufa Municipality in Kalikot district is implementing several projects related to health, road, drinking water and small hydropower this fiscal year.

One of them is building a 14-km road between Chhapre and Balichaur linking three villages in the rural municipality and a budget of Rs50 million has been allocated for it.

For the road project, the municipality expects Rs30 million from the federal government as part of the fiscal equalisation grant that provincial and local governments are legally entitled to.

But with the federal government struggling to raise revenue as expected, they may not get the promised fiscal transfer.

"We will have to reduce the fiscal equalisation grant to the provincial and local g...