KATHMANDU, March 25 -- The government is providing fiscal equalization grants (FEG) worth Rs 148 billion to sub-national grants in the next fiscal year.

According to the National Natural Resources and Fiscal Commission (NNRFC), it has recommended the federal government to provide the aforementioned amount in the FEG to provincial and local governments in the year 2024/25. Out of the recommended amounts, Rs 60 billion will be provided to seven provinces, while Rs 88 billion will be given to the 753 local governments under the heading.

The constitution has maintained that the FEG should be distributed to the sub-national governments on the basis of their expenditure needs and revenue capacity. Although the FEG is considered one of importa...