FinMin presenting the first federal budget
KATHMANDU: Finance Minister Yubaraj Khatiwada is currently presenting the first ever federal budget of the country, for the fiscal year 2018/19, at the parliament, which will transfer around Rs 400 billion to sub-national governments.
Prime Minister, members of the Council of Ministers, members of both the houses of the parliament and foreign dignitaries are attending the presentation.
Provinces and local bodies will get around Rs 53.82 billion in revenue each from revenue-sharing fund, as 30 per cent of value added tax and domestic excise go to sub-national governments. That translates to 15 per cent each to provinces and local bodies directly from revenue-sharing fund.
The federal government will transfer around 30 per cent of the budget to the sub-national government as equalisation and conditional grant. As per the minimum threshold fixed by the National Natural Resources and Fiscal Commission (NNRFC) for the local bodies, each local unit will get no less than Rs 30 million from revenue-sharing and Rs 60 million under equalisation grant.