PM, Provincial Ministers Finalize on Federalism Implementation Plan

Nepal PM Oli and his Provincial Chief Ministers (CMs) have created a ‘29-point federalism implementation action plan’ on December 18, 2018.

The major step comes as a solution to address provincial representatives problems including:

• Writing deadlines on formation of umbrella laws
• Recruiting civil servants for vacant posts in all provinces
• Bringing into operation the crucial fiscal commission

Provincial governments who appealed to Oli earlier, were satisfied with the outcomes of the council meeting and said that the action plan’s implementation will reduce indifferences between federal and provincial governments.

The aforementioned action plan was prepared by a five-member task force under Home Minister Ram Bahadur Thapa’s guidance.

According to Policy Research Academy Chief Chaitanya Mishra, 99 percent of the tasks have to be completed by mid-April, 2019, from the listed 29 items and sub items. 

“The initiative taken at this moment to resolve the problems between federal and provincial governments is positive. But more needs to be done to streamline functioning of provincial governments,” said Lal Bahadur Raut, Chief Minister, Province 2.

National Natural Resource and Fiscal Commission
According to the 29-point action plan, the National Natural Resources and Fiscal Commission that is responsible for distributing revenue and royalty between the three tier-governments will come into effect by mid-January.

Recruitment of Technical Staff
The action plan also seeks to address staff-shortage in provincial government offices by hiring technical staff on temporary contract, in an event when the federal government fails to hire staff by mid-February, 2019.

Provincial governments can also hire human resources through the Federal Public Service Commission if the vacant posts are not filled by the deadline or until the establishment of provincial Public Service Commission (PSC).

Additionally, the Ministry of Federal Affairs and General Administration (MoFAGA) and the Office of the Prime Minister and Council of Ministers will revise the number of ministries and other agencies under provinces by Mid-April.

The revision will be done after MoFAGA completes the process of transferring federal government staff to provincial governments by mid-January.

Physical Assets
The Federal Implementation Action Plan also directs the Federal Government to hand over physical assets to provincial governments by mid-February.

Besides this, unnecessary regional offices under the federal government will be scrapped and their properties transferred to provincial governments by Mid-March.

Other elements of the action plan include:

• Establishing a branch of the central bank in every province by mid-April
• Setting up representative offices for every bank and financial institution by mid-January
• Reviewing the Municipality Development Committee (MDC) Act and nullifying MDC by March 5, 2018
• Handing over government-run children and senior citizen homes and rescue and rehabilitation centres to provincial governments

It also states that the roles of various provincial and local level authorities, boards commissions, committees, foundations and funds will be clarified by mid-March. Also, model laws on consumer rights, market monitoring and registration of private firms in provinces will be formulated by mid-April.

Moreover, model laws on inter-provincial trade and operation of cooperatives at provincial level will be prepared by mid-May, 2019.