Kathmandu, July 12: The World Bank (WB) has renewed its support to the Government of Nepal to strengthen the country’s efforts towards fiscal federalism and improving public financial management.
The assistance is announced under the Second Programmatic Fiscal and Public Financial Management Development Policy Credit Project. The $100 million project, coordinated by the Ministry of Finance which is aimed to reform the fiscal management and is the extended programme of the first Development Policy Credit project.
Today an agreement was signed at the Ministry of Finance between Lal Shanker Ghimire, Secretary at the Ministry of Finance and the World Bank Country Manager for Nepal, Faris H. Hadad-Zervos on behalf of the respective sides.
This project supports reforms in advancing Nepal’s federalism agenda, under two pillars. The first pillar supports measures to establish fiscal federalism through various legislations, policies and regulations. Umbrella legislation, enacted at the federal level, will guide budget execution and improve the accounting and financial reporting framework, and will form the basis of model laws to be adopted by local governments, to govern their budget processes.
The second pillar supports reforms to strengthen the policy framework for public financial management at the sub-national levels. (RSS)