With the adoption of federalism in Nepal, provincial and local governments have assumed the primary responsibility for Lymphatic filariasis (LF) and Visceral leishmaniasis (VL) programmes. However, provinces and local governments have limited own source revenue and are heavily reliant on conditional grants from federal government for financing their activities.

This assessment reviews the effectiveness of the federal Government of Nepal’s conditional grant mechanism for the funding of LF and VL programming at subnational level. Where possible, it seeks to identify deficiencies within the mechanism and offers suggestions on how these may be addressed. This paper can be used to:

·       Inform budget and funding levels for provincial and local governments for the implementation of VL and LF programmes;

·       Consider what steps may be appropriate to improve the targeting of conditional grants to jurisdictions in which VL and LF are endemic.