Fiscal and natural resource federalism are two important pillars of Nepal’s federal system. The NNRFC’s role as custodian of fiscal and natural resource federalism makes it a critical actor to mitigate Nepal’s historical centripetal inertia and thus ensure the realization of the 2015 Constitution’s federal vision. This note was commissioned for the purpose of reflecting on the strategic contribution of the NNRFC to support constitutional commitment towards federalism.
This note explores: 1) the constitutionally mandated responsibilities of the NNRFC; 2) the challenges the Commission faces in fulfilling this role; and 3) three strategic roles that the NNRFC can assume, as custodian, interlocutor, and a knowledge leader in regard to Nepal’s fiscal and natural resource federalism.