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Ministry mulls over using dissolved DDCs’ funds to build offices for local governments

File image: The Ministry of Federal Affairs and Local Development

Kathmandu, January 18

The top bureaucrat at the Ministry of Federal Affairs and Local Development, which is currently facing a tough time to manage the country’s transition to the federal setup, says the Ministry is proposing that the money collected by now dissolved district development committees be used to construct office buildings for newly elected local governments.

Secretary at the Ministry Dinesh Thapaliya says  around Rs 7 billion has been collected in the accounts of dissolved DDCs, and the amount is expected to reach Rs 20 billion by the end of this fiscal in mid-July.

“Most of local governments do not have their own office buildings currently. Many units are delivering services from difficult buildings,” Thapaliya says, “Therefore, we have proposed that a special fund be established and local governments can get money from the fund to construct their buildings.”

The Ministry says a rural municipality can be given Rs 60 million at maximum and a municipality Rs 100 million. If demanded, a ward office can be given Rs 10 million. Likewise, a sub-metropolitan city can by given Rs 150 million.

Building offices of local units requite Rs 123 billion in total, according to a report prepared by the Ministry.

Besides the amount collected by DDCs, the local governments themselves will also be requited to make annual contributions to the fund, according to the official.

Thapaliya says the proposal has been forwarded to the Ministry of Finance for review and endorsement.

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