KARNALI: The Province Council of Economic Affairs has issued a 19-point commitment paper in a bid to reinforce fiscal federalism.

For the robust fiscal federalism, the Council stressed budget discipline, efficient administration and effective inter-province cooperation.

The meeting inaugurated by Chief Minister Mangal Bahadur Shahi concluded on Monday. The list of commitments include constitutional guarantee of fiscal equalization grant, end of federal interference with small projects at sub-national governments, review of revenue and royalty on natural resources, handover of traffic fines and rights relating to vehicle inspection.

Termination of duplication of structures, removal of administrative and legal hurdles, simplification of foreign assistance and loan, review of SUTRA scheme of Natural Resource and Fiscal Commission and legal review on fiscal federalism are other points the meeting gave emphasis.

Consultation on public finance management and pre-budget, relations with local governments, efficient provincial mechanisms, increase in internal revenue and interdependency, good governance and transparency and common provincial stance are also underscored.

The paper is signed by Minister for Economic Affairs and Planning from Koshi, Madhes, Bagmati and Lumbini Provinces.

Chairman of the Federalism and Localization Centre, Dr Khim Lal Devkota, made a presentation on inter-government coordination on strengthening of fiscal federalism. He also brought to light good practices carried out by the province, implementation status, challenges and the way ahead.

In the inaugural, Chief Minister Mangal Bahadur Shahi said it was imperative to whet a debate on how effective enforcement of constitution and federalism could be ensured.

Effective implementation of federalism is directly related to citizen’s expectation, he said, adding that province governments are robust when federalism is reinforced.