Acting Finance Commission Chief Discusses Revenue Sharing, Grants, and Fiscal Federalism Challenges
Summary
Acting Chairman Juddha Bahadur Gurung of Nepal's National Natural Resources and Fiscal Commission discusses revenue sharing, grants, and challenges in fiscal federalism as the commission submits its recommendations for the fiscal year 2083/84.
Key Points
- The National Natural Resources and Fiscal Commission has submitted its recommendations for revenue sharing, grants, and borrowing limits for fiscal year 2083/84.
- Equalization grants to provinces and local levels are estimated to show a 4 percent decrease from last year, with performance-based assessments using multiple indicators.
- Conditional grants are recommended to be given as block grants based on outcomes rather than project-specific funds, allowing local flexibility.
- Internal borrowing limits have been set higher post-COVID-19, but municipalities and provinces have yet to fully utilize these borrowing capacities due to legal and administrative challenges.
