The Madhesh Provincial Government has suspended conditional, special, and complementary grants allocated to 25 local governments that failed to deposit revenue shares owed to the provincial treasury.

According to the Ministry of Finance, the affected municipalities and rural municipalities have not transferred the province’s share of collected revenue despite repeated reminders and official correspondence. Data from the ministry shows that the outstanding amount has reached Rs. 622.9 million.

Madhesh Province consists of 136 local governments across eight districts, and the 25 local units facing grant suspension represent those with long-standing unpaid revenue obligations.

Finance Minister Yubaraj Bhattarai said the provincial government had repeatedly requested local bodies to deposit the required funds but received little response. He emphasized that while local governments enjoy autonomy under Nepal’s federal system, they are still obligated to comply with existing laws and revenue-sharing provisions.

The suspension of grants is expected to affect salary payments for local government employees as well as ongoing development and infrastructure projects in the affected municipalities. Provincial authorities say the measure is intended to enforce accountability and strengthen fiscal discipline within the federal governance framework.