Nepal has made significant progress on fiscal federalism, but more needs to be done to strengthen the regulatory framework, institutional setup, human resource capacity, and public financial management (PFM) systems at the provincial and local levels, says the World Bank in its first annual Nepal Fiscal Federalism Update. 

“The report highlights the need to develop a fiscal federalism roadmap that encompasses a clear set of actions, sequence, timeline, and responsible actors to improve fiscal federalism outcomes in Nepal,” said Balananda Paudel, Chairperson of the National Natural Resource and Fiscal Commission.