KATHMANDU: The Government of Nepal has announced that it will transfer Rs 582.83 billion to provincial and local governments through financial transfers in the upcoming Fiscal Year 2082/83 (2025-26).

Presenting the national budget at the joint session of the Federal Parliament, Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel said this amount will be allocated to subnational governments through revenue sharing and various grants.

According to him, based on the recommendation of the National Natural Resources and Fiscal Commission, Rs 60.66 billion will be transferred to the provinces and Rs 88.97 billion to local levels as equalization grants.

For conditional grants, Rs 30.35 billion will go to provinces and Rs 211.46 billion to local levels, totaling Rs 241.81 billion. Similarly, under matching grants for infrastructure project implementation, Rs 3.28 billion has been allocated to provinces and Rs 10.06 billion to local governments.

In terms of special grants, Rs 3.27 billion has been earmarked for provinces and Rs 9.78 billion for local levels. Finance Minister Poudel also mentioned that conditional, special, and matching grants will be distributed based on performance metrics.

Additionally, Rs 165 billion is expected to be transferred through revenue sharing. Combining all sources—revenue sharing and various grants—the federal government plans to allocate a total of Rs 582.83 billion to subnational governments in FY 2082/83.