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Art. 216 · Part 17

Local Financial Resources

स्थानीय वित्तीय स्रोत
Original Text

Local governments may levy and collect taxes on matters within their jurisdiction. They receive fiscal transfers and grants from federal and provincial governments.

💡 Plain Language Explanation

Local governments have three revenue sources: (1) own taxes — property tax, rental tax, business registration, local fees; (2) fiscal transfers from the federal government (equalization, conditional, and matching grants); (3) provincial grants. In practice, federal transfers are the biggest source (60-80%) because local tax bases are small, especially in rural areas.

🇳🇵 नेपाली व्याख्या

स्थानीय कर (सम्पत्ति, भाडा, व्यवसाय), संघीय अनुदान (राजस्व बाँडफाँट, सशर्त अनुदान), र प्रदेश अनुदान।

✅ Strengths

Constitutional right to levy local taxes gives municipalities genuine fiscal tools.

⚠️ Concerns

Most local governments collect far less than their potential; heavy dependence on federal transfers undermines autonomy.

Art. 215Art. 217
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