The Madhesh provincial government in Nepal has suspended financial grants to 25 local units due to their failure to remit required revenue shares. Provincial law mandates that local governments transfer 40 percent of royalties and taxes collected to the province, a requirement many have reportedly ignored. These funds were instead utilized for local spending, violating provincial financial regulations. The halted grants represent a significant financial pressure tactic aimed at enforcing compliance with revenue-sharing laws. Provincial officials state the move is necessary to ensure equitable distribution of resources and maintain fiscal discipline. The affected local units are now facing budgetary constraints as a result of the funding suspension. Negotiations are expected to occur between provincial and local authorities to resolve the outstanding dues and reinstate the grants.