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Public Expenditure in Federal Structure: Opportunities and Challenges

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.