Karnali: The Economic Affairs and Planning Ministry of Karnali Province government has issued a 27-point directive to 70 local levels for the effective implementation of the budget. Minister Raj Bikram Shah stated that the local levels were given directions to encourage frugality and discipline, ensuring wise use of the budget. The directive includes guidelines on revenue sharing, project and program implementation, accounting and auditing reports, and fiscal discipline, as explained by ministry secretary Rabi Lal Sharma. The province will disburse the budget to the local levels in four installments, he added.
According to National News Agency Nepal, the budget for projects at local levels will be released based on the progress of project implementation, putting pressure on local levels to ensure timely and effective project execution, according to Sharma. As per the directive, the provincial government may halt grants if local levels fail to provide adequate reports on project reviews, financial spending, and physical progress.
The local levels are instructed to allocate their budgets strictly under the assigned headings. Sharma clarified, “Such direction came after the local levels spent budgets on their own.” Additionally, local levels are directed to deposit 40 percent of the revenue generated from advertisement tax, recreation tax, tourism fees, and natural resource utilization into the province government’s reserve fund monthly.
The ministry further cautioned that failure to adhere to these directions could result in cuts to their equalization grants.