19-Point Commitment Unveiled to Reinforce Nepal’s Fiscal Federalism
Summary
Nepal’s provinces have issued a 19-point commitment to strengthen fiscal federalism through tighter budget discipline, better coordination and reduced federal interference. The plan calls for protecting fiscal equalization grants, expanding provincial authority and improving public financial management.
Key Points
- The Province Council of Economic Affairs unveiled a 19-point commitment paper to strengthen fiscal federalism through budget discipline, administrative efficiency and better coordination among provinces.
- The commitments include safeguarding fiscal equalization grants, ending federal interference in small projects, reviewing natural resource revenue sharing and transferring some authority over traffic fines and vehicle inspections.
- Provincial ministers from Koshi, Madhes, Bagmati and Lumbini signed the paper, while Dr. Khim Lal Devkota presented on intergovernmental coordination.
- Chief Minister Mangal Bahadur Shahi said stronger implementation of federalism is needed to meet citizens’ expectations and make provincial governments more effective.
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