Kathmandu: The National Planning Commission (NPC) has received an extensive array of over 3,600 proposals for fiscal equalization and special grants for the upcoming fiscal year from all regions of the country, except Madhes province.

Sources within the NPC have confirmed the absence of proposals from Madhes province seeking fiscal equalization and special grants. Consequently, projects initiated earlier but yet to be completed in the province may not receive budgetary allocations under these schemes for the next fiscal year.

In November last year, the NPC issued a circular to all provinces and local levels, urging them to recommend projects eligible for equalization and special grants by mid-January 2024. The submission was to be made through an online system for consideration of grants from the federal government.

NPC Programme Director, Shiva Ranjan Poudyal, expressed concern over the lack of participation from Madhes province, highlighting that despite ongoing projects in the region, no proposals were submitted through the system. The working procedure mandates proposals for both new and ongoing projects, requiring detailed information on costs, contract points, progress reports, and other relevant details.

Federal equalization grants and special grants are allocated by the federal government annually to provinces and local levels. However, the process involves the submission of proposals by the Office of the Chief Minister and Council of Ministers in the case of provinces, and by local executive meetings for local levels.

Nathu Prasad Chaudhary, Vice-chair of the Province Policy and Planning Commission of Madhes province, acknowledged that project priorities had been identified for federal grants. However, he noted that the Office of the Chief Minister and Council of Ministers had yet to advance the approval process for these projects, underscoring their responsibility in submitting proposals for grant demands.

The absence of proposals from Madhes province underscores challenges in coordinating and advancing the fiscal allocation process, necessitating collaborative efforts between provincial authorities and the federal government to ensure equitable distribution of resources for development initiatives.