The government has effectively carried out fiscal transfer to the local units through new budget. The second budget post new constitution has earmarked huge resources - Rs225.05 billion to the newly formed local bodies, from village councils to the metropolis.

Of the total budget allocated to local units, village councils have received the largest chunk - Rs 116.99 billion, followed by municipalities (Rs92.75 billion), sub-metropolitan (Rs9.41 billion) and metropolis (Rs5.88 billion).

With implementation of federalism being one of the priorities of the budget, Finance Minister Krishna Bahadur Mahara has empowered the local bodies with huge grants. As per the budget, village councils will get minimum Rs100 million and maximum Rs390 million as direct grant from the central government to carry out development works on its own. Such grants for municipality is minimum Rs150 million and maximum Rs430 million, for sub-metropolitan minimum Rs400 million and maximum 630 million, and for metropolis minimum Rs560 million and maximum Rs1.24 billion.

The local units can implement their budget and programmes through concerned municipal assembly or village assembly.

According to Finance Minister Krishna Bahadur Mahara, most of the programmes currently run by local development ministry will be carried forward by the newly formed local bodies from now onwards.

Urban infrastructure development programme, garbage management programme, rural drinking water and sanitation programme, local transportation infrastructure programme, small irrigation, river control and other infrastructure programme, and linking of roads between two districts have come under the purview of local bodies.

The new budget has transferred resources related to salary of basic and secondary level teachers, grants for operation and management of secondary schools, scholarships to Dalit and girl students of Karnali region to the local bodies.