(1) When making recommendations to the Government of Nepal and the provinces regarding financial equalization grants to be provided by the Government of Nepal to the provinces and local levels and by the provinces to the local levels in accordance with the prevailing laws, the commission shall do so on the basis of the following:-
(a) Human development index such as education, health, drinking water at the provincial and local levels (B) Balanced development situation of other provinces or local levels,
(c) The situation of economic, social or any other kind of discrimination at the state and local level,
(d) State and local infrastructure development conditions and needs,
(e) Services to be delivered to the people by the state and local levels (f) State and local level revenue situation and ability to raise,
(g) The need for state and local level expenses.
(2) When making recommendations to the Government of Nepal and the provinces regarding conditional grants to be provided by the Government of Nepal to the provinces and local levels and by the provinces to the local levels in accordance with the prevailing laws, the Commission shall base the matters mentioned in Clause (c) and Sub-section (1) of Article 251 of the Constitution. It will have to be taken.
(3) When recommending financial equalization grants according to sub-section (1), the commission shall recommend the minimum subsidy to be received by each province and local level and the financial equalization subsidy to be received by each province and local level according to the bases according to sub-section (1).