Art. 256 · Part 26
Revenue Sharing
राजस्व बाँडफाँट
Original Text
NNRFC recommends distribution of federal revenues to provinces and local levels. Considers: population, area, poverty index, and fiscal effort.
💡 Plain Language Explanation
The NNRFC decides how national tax revenues (VAT, income tax, customs) are distributed from Kathmandu to provinces and local governments. Uses four criteria: population (biggest weight), geographic size, poverty levels, and how much a province generates its own revenue. This is how Rs 400+ billion annually flows to subnational governments.
🇳🇵 नेपाली व्याख्या
NNRFC ले संघबाट प्रदेश र स्थानीय तहमा राजस्व बाँडफाँटको सिफारिस गर्छ।
✅ Strengths
Objective formula-based distribution reduces arbitrary central control.
⚠️ Concerns
Karnali and remote provinces argue formula still under-compensates for geographic difficulty.