Sunday, July 19th, 2026

Gaps pointed out in fiscal federalism



KATHMANDU: The National Natural Resources and Fiscal Commission has called for needs identification and justifiable distribution for public spending.

During a meeting of the Finance Committee of the House of Representatives (HoR), Commission’s Chairman Balananda Poudel argued for establishing a standard on the quality and quantity of the performance to be executed by the Federal, Province and Local Levels.

“The province and local levels should be given the right to select the particular road projects to be constructed in a particular site despite the federal government selects the total roads to be constructed in a year across the country. Minimum standards of development should reach in all local levels,” Poudel said.

Poudel was of the view that the conditional grants given to the local level should be reduced as per the recommendation of the Commission for the implementation of the fiscal federalism.

The Commission has complained for lack of cooperation from the government for the drafting of integrated law.

Committee’s President Krishna Prasad Dahal commented that lack of laws for the Commission itself was unfortunate though the Commission has the entire rights to implement fiscal federalism.

Dahal said that increased amount of conditional grants to the local levels indicates gaps in fiscal federalism. “It seems there lacks identification of economic resources, collection and utilisation in the local levels.”

Likewise, Committee’s member Satya Pahadi pointed out the need for fiscal discipline and justifiable distribution of revenue.

Another member of the committee, Padam Giri, said serious issues have been raised in regard to fiscal discipline as the local levels were spending resources from political interests and many expenses were taken place in unjustifiable topics.

Publish Date : 07 March 2022 10:38 AM

Two US troops killed, one missing after Iranian strikes in Jordan

JORDAN: Two US military personnel were killed and another remains

Economic Digest: A Snapshot of Nepal’s Business News

KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of

Rain disrupts highways, some roads closed during night hours

KATHMANDU: Continuous rainfall has affected several highways across the country,

Monsoon activity intensifies, heavy rainfall likely today

KATHMANDU: The monsoon system has become more active across the

Govt restricts vehicle movement amid monsoon risks

KATHMANDU: The government has decided that vehicles will be allowed