KATHMANDU: The Ministry of Local Development is all set to implement the Local Governance Act 2055 BS in the next fiscal.

Narahari Sharma Bhandari, officer at the Municipal Management Section, MOLD, informed that though the Act came into being a year ago, it was not fully implemented. "We are all set to enforce it in the next fiscal," he said.

The MoLD has also decided that budget for Local Governance Community Programme for municipalities would be provided on the basis of performance. "The budget of municipalities with unsatisfactory performance would be reduced by 25 per cent," he said. The performance evaluation of municipalities would be completed by June, said Bhandari.

The MoLD provides a grant of Rs 320 million (Rs 55.5 million for administrative expenditure and Rs 264.5 million for development projects to the municipalities.

As much as Rs 160 million has been allocated for roads while Rs 2.5-5 million has been allocated for people's participatory programmes.