Finance Commission’s recommendation to the government not to subsidize single rights projects

Kathmandu. The National Natural Resources and Finance Commission has recommended to the government not to give conditional grants to projects under the sole authority of the state and local levels.

Regarding the budget to be made by the government for the next fiscal year 2080/081, the commission has recommended with suggestions not to provide conditional grants to fragmented and single rights projects.

The commission has requested that the conditional grants be linked to the goal of balanced development of the country and distributed transparently based on certain policies, indicators and standards. The commission has also recommended that the amount of conditional grants from the Union be gradually reduced and replaced by equalization grants.

The commission has also suggested to the government to transfer a lump-sum grant without specifying the expenditure title or sub-heading within the project while providing the conditional grant. By doing this, the ownership of the relevant level towards the project can be maintained, the commission said.

The commission suggests that in the case of projects or programs conducted with the participation of consumer committees and cost sharing, the internal resource allocation of the respective provinces or local levels should be given support without the allocation of conditional grants.

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