Govt aims to strengthen fiscal coordination among federal, provincial and local levels

Kathmandu. A meeting of the Inter-Governmental Financial Council and thematic committees has decided to make the financial transfer system transparent, predictable and equitable.

A meeting held under the chairmanship of Finance Minister Swarnim Wagle took the decision to this effect. Likewise, the meeting has adopted a policy to increase equalization grant and gradually reduce conditional grant. The meeting also decided to control revenue leakage, increase internal resource mobilization, stop budget appropriation for small and duplicate projects and mandatorily implement the concept of project bank.

Likewise, an agreement has been reached to increase the share of the municipalities in royalty received from natural resources, reduce recurrent expenditure, implement austerity policy and implement a real-time system by integrating financial information system.

The meeting has laid emphasis on increasing collaboration among the three tiers of government to make service delivery and good governance effective. The meeting of the Inter-Government Financial Council and thematic committees has been held with the objective of strengthening financial coordination among the federal, provincial and local levels.