World Bank report recommends reforms to strengthen fiscal federalism in Nepal

It also recommends amending the legal framework to clarify the concurrent and shared responsibilities among the three tiers of government.

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.