Barriers to enforcement of federalism continue
Summary
Nepal's fiscal federalism gains momentum but faces structural and policy challenges including resource sharing, budget management, and power devolution among government levels.
Key Points
- Fiscal federalism in Nepal is progressing but structural and policy-level issues remain unaddressed for effective enforcement.
- Some local governments struggle to submit budgets on time, and spending of allocated budgets is incomplete.
- Both central and provincial governments are reluctant to fully devolve power to local levels hindering fiscal federalism benefits.
- The distribution of natural resources and inter-government fiscal arrangements lack clarity, needing legislative amendments.
