Gaps pointed out in fiscal federalism


March 7, 2022


Gaps pointed out in fiscal federalism

National Natural Resources and Fiscal Commission (File photo)

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.