Madhesh government halts grants to 25 local units over revenue dues

Law requires local units to transfer 40 percent of royalties and taxes to the province, but many have withheld and spent the funds.

The Madhesh provincial government has suspended conditional, special and complementary grants to 25 local units that have failed to transfer the province’s share of revenue collected under existing laws. The move could disrupt development projects and delay salaries for teachers, health workers and other public employees.