The implementation of the Federal
system requires a strong foundation. Local government Operation Act 2074 and
Intergovernmental Fiscal Arrangement Act 2074 provide the basis for its effective
implementation. But since federalism is a fairly new subject for Nepal,
problems regarding the distribution, utilization and implementation of
resources have surfaced.
In this context a programme ‘Public Expenditure System in Federal
Structure: Opportunities and Challenges’ was jointly organized by Public
Expenditure Review Commission (PERC) and South Asia Watch on Trade, Economics
and Environment (SAWTEE) on November 16, 2018, to discuss the complexities of
public expenditure in the fledgling federal system, especially in the context
of agricultural development. The recurring theme of discussion was that growing
fiscal anarchism if shifted to province and local level will be disastrous;
therefore it needs to be tackled to achieve effective and productive public
expenditure at all levels of the government.
