Karnali Province Receives Increased Federal Grant Amidst Implementation Challenges

Key Points

• Karnali Province will receive Rs 17.20 billion in federal grants for the upcoming fiscal year, second only to Madhesh Province.
• The total financial transfer including revenue sharing to Karnali is expected to exceed Rs 27 billion.
• Karnali heavily depends on federal grants as its internal income is less than 30 percent of its total budget.
• The province faces significant challenges in budget implementation, with large portions of allocated funds remaining unspent due to factors like increased prices of construction materials.