Kathmandu, May 29 -- The federal government has allocated Rs582.83 billion in financial transfers to provincial and local governments for the upcoming fiscal year 2025-26, Finance Minister Bishnu Paudel announced during the budget presentation at the joint session of Parliament on Wednesday.

According to Paudel, this amount includes funds to be distributed through revenue sharing and various grant mechanisms, including fiscal equalisation, conditional, special, and complementary grants.

Based on recommendations by the National Natural Resources and Fiscal Commission, Rs60.66 billion will be provided to provinces and Rs88.97 billion to local levels under fiscal equalisation grants. Additionally, Rs30.35 billion and Rs211.46 billion have ...