Madhesh Province Halts Funds for 25 Units Over Tax Arrears
Law requires local units to transfer 40 percent of royalties and taxes to the province, but many have withheld and spent the funds.
The Madhesh provincial government has suspended financial grants to 25 local administrative bodies. This action stems from the local units' failure to transfer a mandated portion of their collected royalties and taxes to the provincial authority. Reports indicate that numerous local governments have retained and utilized these funds, contravening provincial regulations.
This move highlights a fiscal dispute between provincial and local governments regarding revenue sharing, potentially impacting local service delivery.
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