Fiscal transfers for what?

The laws related to grant distribution have not defined and clarified the concept of expenditure needs.

The rights of the three tiers of government are included in the schedule of the constitution. Functional and revenue rights, provision of fiscal transfers and borrowing of the provinces and local levels are enshrined in the constitution. In terms of functional responsibilities, Nepal’s constitution is devolved. Functional responsibilities are pyramidal from the bottom to the top (more expenditure responsibilities at the provincial and local levels, and lower at the federal).