Nepal makes important progress in federalism implementation: FCNA

Kathmandu, Jan. 30

A study on the Federalism Capacity Needs Assessment (FCNA) has concluded that Nepal has made a significant progress in the implementation of federalism.

The FCNA has identified measurable progress since the adoption of the federal constitution in 2015 with the setup of key institutional structures, strengthening of the regulatory environment and strong initial progress in the adjustment of personnel in all levels of the government.

State and local governments account for about 34 per cent of total national expenditure, suggesting strong government acknowledgment of the importance of fiscal federalism.

However, gaps still exist between the needs and existing capacity at all levels of government to manage new functions, concluded the FCNA.

The assessment calls for a strategic approach to capacity building for federalism, including the need to prioritise measures to strengthen the foundations for intergovernmental and inter-ministerial coordination and monitoring of the implementation of federalism.

The FCNA recommends a roadmap essential to help improve Nepal’s capacity readiness for federalism.

Speaking at a FCNA briefing programme the other day, Finance Minister Dr. Yuba Raj Khatiwada said that Nepal’s transition to federalism significantly increased the need for developing capacity at all levels of the government and modernise the governance system.

“Nepal’s transition to federalism significantly increases the need to develop capacity at all levels of the government and to modernise the governance system and institutional framework as an ongoing process,” he said.

“This will help in taking on new service delivery responsibilities as required in the federal set-up, and meet growing demand for better public services,” he added.   

“Nepal has made a historic move from a unitary form of government to a federal system that builds accountability of three levels of the government,” stated Minister of Federal Affairs and General Administration Hridayesh Tripathi.

Chief Ministers of five states expressed appreciation of the process and agreement of the findings and recommendations of the FCNA.

The FCNA was first disseminated at the federal level in December 2019. The report dissemination process, which seeks to mainstream findings and recommendations in all three levels of the government, will be completed by disseminations organised for State and local government officials and other stakeholders within the first quarter of 2020, said the WB.

The FCNA is an assessment of Nepal’s capacity needs in the State and local governments to implement federalism, along with a roadmap of priorities for all three levels of governments over the short and medium terms.

Led by the government with the support of the WB and UNDP, the FCNA was jointly undertaken by the Georgia State University and Nepal Administrative Staff College which was initiated in September 2018 and completed in December 2019.

Published in The Rising Nepal daily on 31 January 2019.