Baku:Karnali The Province Council of Economic Affairs has issued a comprehensive 19-point commitment paper aimed at reinforcing fiscal federalism. The council emphasized budget discipline, efficient administration, and effective inter-province cooperation as key components for achieving robust fiscal federalism.
According to National News Agency Nepal, the meeting, which was inaugurated by Chief Minister Mangal Bahadur Shahi, concluded on Monday with a focus on several critical areas. These include the constitutional guarantee of fiscal equalization grants, the end of federal interference in small projects at sub-national governments, and a review of revenue and royalty on natural resources. Additionally, the council called for the handover of traffic fines and rights related to vehicle inspection.
The commitment paper also highlighted the importance of terminating duplicate structures, removing administrative and legal hurdles, simplifying foreign assistance and loans, and reviewing the SUTRA scheme of the Natural Resource and Fiscal Commission. A legal review on fiscal federalism was also emphasized as a necessary step.
Further points of focus include consultation on public finance management and pre-budget planning, strengthening relations with local governments, enhancing efficient provincial mechanisms, increasing internal revenue, fostering interdependence, and promoting good governance and transparency. The paper was signed by the Minister for Economic Affairs and Planning from Koshi, Madhes, Bagmati, and Lumbini Provinces.
Dr. Khim Lal Devkota, Chairman of the Federalism and Localization Centre, presented on inter-government coordination, highlighting good practices, implementation status, challenges, and future directions for strengthening fiscal federalism. Chief Minister Shahi underscored the necessity of ensuring effective enforcement of the constitution and federalism, noting its direct impact on meeting citizens’ expectations and the strength of provincial governments.