KATHMANDU, March 16: The Ministry of Finance has released Rs 5 million each to the 744 new local units. A cabinet meeting had last week decided to provide at least Rs 10 million each to the local units. 

Talking to journalists at the ministry Wednesday, Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara said the ministry has released Rs 5 million as the seed money for the basic infrastructure of the local units. “The newly formed 744 local units will each get Rs 10 million,” he said, adding that Rs 5 million has been immediately released, and the remaining amount will be released on the basis of budget usage.

The Ministry of Finance has released Rs 3.5 billion from the “miscellaneous budget head” under the Ministry of Finance. “The seed money will help the newly-formed local bodies manage their staff, and construct physical infrastructure,” he said, adding that the amount is grant to the local units. “Though the metropolises have their own resources for such works, the rural municipalities, currently do not have resources also to set up new structure too.”

The government has -- in order to implement federalism -- formed a total of 744 local units including 4 metropolises, 13 sub metropolises, 246 municipalities, and 481 rural municipalities, and they have started setting up their offices from Monday.

The government has sent joint secretaries to the metropolises, under secretaries to the sub metropolises and municipalities, and section officers to head the rural municipalities, he informed.

Mahara, on the occasion also informed that the ministry has already released Rs 10 billion for the Election Commission for the local election, and Rs 10 billion will be provided to the Ministry of Home Affairs. “Though the Ministry of Home Affairs has asked for Rs 31.75 billion for security arrangements for the local election, we are trying to add more budget for them according to the need,” he added.

The government has allocated Rs 20 billion for the local election that is slated for May 14 this year.

 
• ministry of finance
 
• cabinet meeting