Effective Implementation of Federalism: Finance Minister Dr. Khatiwada

KATHMANDU, Sept 5: Finance Minister Dr. Yuba Raj Khatiwada has said that the implementation of the federal structure along with its financial units has been extremely effective. He also said that the distribution and allocation of rights and duties within the institutional framework was remarkable and making steady progress.

In a meeting with the Government of United Kingdom (UK) Ambassador Richard Morris and the Department for International Development (DFID) Permanent Secretary Matthew John Rycroft, FM Dr. Khatiwada laid emphasis on the improvement of capacity building at the local level and the judicial system in the provinces.

He said that there was the urgency to develop additional capacity-building measures in order to maintain effective good governance and that Nepal was at a new era of development and learning. The FM also stated that the country was transforming rapidly amalgamating toward the federal structure. Distribution of resources and its allocation from the central to the administrative local levels were in the process of successful implementation and thus potential economic growth starting from the local level were very positive.

FM Khatiwada stated that Nepal was naive to the federal structure. All legalities and administrative demarcations were created within a very short span of time. There were many challenges still to be faced, and efforts are being made to organize budget spending and holding expenses accountable through a unitary system at all levels. In the meeting, he also discussed about the post-Gorkha earthquake reconstruction efforts that were made and was satisfied with its outcome. Challenges were still prevalent due to availability of resources and logistics, and that the government also had to rebuild many government establishments, heritage sites, and institutions in the affected parts.

(FM Dr. Khatiwada and DFID Permanent Secretary Matthew Rycroft)

DFID Permanent Secretary Matthew Rycroft in this meeting conveyed that the transition of Nepal’s unitary governance system toward the federal system as an example to be shown to the entire world. He said that the entire process happened without disputes and was peacefully concluded and there was a lot to learn for this entire process. He said that the UK government along with the DFID was committed to investing in various parts of Nepal. Similarly, he also discussed the process of double tax exemption agreement between Nepal and the UK. The diplomatic relations between the two nations are over 150 years old and they were committed toward assisting Nepal.