Since the adoption of Nepal’s 2015 Constitution, the nation has transitioned to a federal system, establishing seven provinces and 753 Local Governments (LGs). This structural shift has brought significant changes in governance. These changes have created both opportunities and challenges in managing public finances effectively across different tiers of government.
Niti as a national partner in implementation of USAID-PFM provides technical support in Improving the Effectiveness of the National Natural Resources and Fiscal Commission (NNRFC). The NNRFC was established with the mandates for designing and implementing two important aspects of federalism: fiscal federalism and natural resource federalism.
In the process of strengthening NNRFC, Niti has been supporting the NNRFC in the areas of data analysis-based decision making including the revision of existing royalty sharing structure, bases and frameworks and revenue sharing frameworks.
