No proposals from Madhes province for fiscal equalization and special grants

KATHMANDU, MAY 9: The National Planning Commission (NPC) has received over 3,600 proposals for fiscal equalization and special grants for the upcoming fiscal year from across the country, except the Madhes province. According to NPC sources, the Madhes province has not submitted any proposals to the NPC seeking fiscal equalization and special grants.

As the Madhes province has not demanded the budget, the projects started earlier but are yet to be completed will not receive the budget under equalization and special grants for the next fiscal year. The NPC issued a circular to all provinces and local levels last November, asking them to recommend equalization and special grants projects by mid-January 2024.

They were asked to propose projects and programs through the online system to receive grants from the federal government. NPC program director Shiva Ranjan Poudyal told RSS, “There were consecutive projects in Madhes province as well. But they did not log in to the system. There were no proposals seeking a budget for both new and consecutive projects. NPC was asking the province authorities to submit proposals through the system until the deadline. But, the Madhes province did not send any proposals.”

The related working procedure stipulates that proposals must be sought also for consecutive projects. The total cost, contract points, progress report, and other details should be presented in the proposals. Provisions have been made regarding federal equalization grants and federal special grants in the Fiscal Equalization Grant (Third Amendment) Working Procedure, 2077, and the Special Grant (Third Amendment) Procedure, 2077 BS. The federal government allocates a budget to the province and local levels every year under the headings of equalization and special grants.

As per the provisions of the working procedure, the office of the Chief Minister and Council of Ministers in the case of the province and the local level have to submit proposals to the NPC with demands for grants for the projects recommended by the executive meeting. Vice-chair of the Province Policy and Planning Commission of the Madhes province government, Nathu Prasad Chaudhary, said although the list of projects has been prioritized for receiving federal equalization and special grants, the Office of the Chief Minister and Council of Ministers has not moved forward with the process.

“The Province Planning Commission had already sent priorities of the projects and programs. It is the responsibility of the Office of the Chief Minister and Council of Ministers to approve these programs and projects and send proposals with demands for grants,” he said.