Govt to amplify fiscal equalization grant: PM Prachanda

Kathmandu / March 28: Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has said that the government is not in the favour of reducing fiscal equalization grants.

While responding to the apprehension made by the provincial and local governments about reducing fiscal equalization grants, the PM clarified that there will be no reduction of fiscal equalization grants.

However, the PM hinted that the conditional grants will be slowly reduced. He also said that special grants will get forwarded in new forms.

Addressing the 52nd National Development Problem Solution Committee meeting held at the Office of the Prime Minister and Council of Ministers on Thursday, PM Prachanda said that the government has the policy to amplify the fiscal equalization grant.

The PM said, “ The fiscal equalization grant will not be reduced, and sustained with its originality. The policy to reduce conditional grants public, and increase fiscal equalization grants is the right policy related to the implementation of federalism. We need to think about specialized grants in a new way as well.”

The Prime Minister pointed out that the fiscal equalization grant will be included in the next fiscal year.