Thursday, February 22, 2018

transpareny and financial discipline, key challenges to federalism

Kathmandu, Feb. 21: Deputy Auditor General Damodar Prasad Regmi Wednesday said that the federal structure of the country has challenges in maintaining economic transparency, fiscal accountability and financial discipline.

As many legal provisions are yet to be formulated and implemented and the public administration is facing a shortage of human resources, coordination is lacking among the three levels of government, which might create problems in the local governments in the budget formulation process.

Furthermore, the local bodies’ capacity needed to be enhanced, but there has been no effort in that direction, said Regmi at an interaction organised by the Public Expenditure and Financial Accountability (PEFA) and Society of Economic Journalists of Nepal. Regmi is also the coordinator of PEFA in Nepal.

“All 761 governments – federal, provincial and local – will have the same authority in their respective jurisdiction as per the constitutional provisions. It is crucial to forge coordination and collaborations among these governments for common governance and good governance,” he said.

Governments at all levels are in the process of formulating the budget for the coming fiscal year 2018/19.

PEFA member secretary Murari Niraula said the availability of resources, financial expenditure, gap between income and expenditure and reports are the fundamental requirements of decentralisation.


According to him, although the local governments are autonomous in their fiscal management, the federal government will facilitate them through the Treasury Controller Offices (TCOs) in implementing the accounting system and budget until their capacity for it is strengthened. 



Published in The Rising Nepal daily on February 22, 2018. 

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