Kathmandu: The Chief Minister of Madhes Province, along with Economic Affairs Ministers from various provinces, emphasized the importance of collective understanding and collaboration to tackle issues related to fiscal federalism’s implementation.
According to National News Agency Nepal, although some challenges in executing fiscal federalism have been addressed, new issues continue to arise, necessitating innovative solutions. This topic was at the forefront during the 11th meeting of the Inter-Governmental Fiscal Council, held at the Ministry of Finance, Singha Durbar, and chaired by Council Coordinator and Finance Minister Rameshore Prasad Khanal.
During the meeting, the Economic Affairs Ministers from all seven provinces submitted a declaration on fiscal federalism to the Federal Finance Minister, advocating for its effective execution. Finance Ministry spokesperson, Tanka Prasad Pandey, highlighted that the meeting included discussions on the obstacles faced by fiscal federalism and potential resolutions.
Joint Secretary Sewantak Pokharel, Head of the Fiscal Federalism Coordination Division, stressed the necessity for all government levels to enhance service delivery to foster good governance. He underscored the need to address budget and project implementation disputes among federal, provincial, and local entities, alongside improving tax implementation and standardizing revenue and expenditure reporting systems.
The meeting also tackled subjects such as human resource management, the Third Public Financial Management Reform Strategy’s implementation, financial discipline, and resource utilization by government tiers in upcoming elections. Discussions intended for the Inter Provincial Council meeting were also on the agenda.
Representatives from various municipalities, including the Municipal Association of Nepal presidents, called for a swift clarification on financial equalization grant allocations and expedited resolution of legal and procedural matters linked to fiscal federalism. They also urged the rectification of contradictions arising during law enforcement.
Participants expressed views on managing projects, organizational structures, and challenges faced by provincial and local levels. Assistance in reconstructing infrastructure damaged during the Gen Z movement was also a focal point of discussion.
Finance Minister Khanal affirmed that provinces and local levels are autonomous and responsible for budget formulation and execution. He highlighted the commitment to fiscal federalism as a path to identifying and addressing problems, even during the implementation phase.