Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Provincial and local governments across Nepal have submitted around 3,500 project proposals to secure supplementary (matching) and special grants from the federal government for the upcoming fiscal year 2083/84 (2026/27 AD), signaling a strong push toward decentralized development and capital investment.
According to the National Planning Commission Nepal, a total of 3,498 projects have been proposed—3,358 from local governments and 140 from provincial governments.
81% Projects Are New, Reflecting Expansion Push
A significant highlight of the submissions is that 2,820 projects (around 81%) are new, while 678 are ongoing (multi-year) projects, indicating an aggressive expansion in development planning at subnational levels.
Breakdown of proposals:
Special Grants (New): 1,464 projectsMatching Grants (New): 1,356 projectsSpecial Grants (Ongoing): 220 projectsMatching Grants (Ongoing): 458 projects
This distribution shows a balanced mix of fresh initiatives and continuity of previously approved programs, particularly in infrastructure, social development, and local economic growth sectors.
Evaluation Process Underway
The National Planning Commission had set a deadline until the end of Magh (mid-February 2026) for submission of proposals under both grant categories.
Assistant Spokesperson Dr Diwakar Luintel confirmed that the Commission is currently engaged in detailed evaluation and cost analysis of the submitted projects.
“We are reviewing project cost estimates, budget ceilings, implementation readiness, and supporting documentation to ensure effective allocation of grants,” he said.
Focus on Feasibility and Readiness
Officials noted that priority will be given to projects that demonstrate:
Strong implementation preparednessClear financial and technical feasibilityAlignment with national development prioritiesProper documentation and compliance
The evaluation process is expected to play a critical role in ensuring that limited federal resources are directed toward high-impact, execution-ready projects.
Strategic Importance for Nepal’s Economy
Supplementary and special grants are key fiscal instruments used by the federal government to support infrastructure development, service delivery, and balanced regional growth across provinces and local levels.
The surge in project proposals reflects:
Increasing capacity of local governmentsRising demand for federal co-financingStronger focus on grassroots development and decentralization
However, experts caution that the high number of proposals could also pose challenges in terms of budget allocation efficiency, project prioritization, and execution capacity.
With the evaluation process ongoing, the final selection of projects will determine how effectively Nepal can channel federal grants into productive investments, job creation, and sustainable development outcomes in the next fiscal year.
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