Implementing Federalism: Issues and Challenges Balananda Paudel

काठमाण्डौ महानगरपालिका संघीय स्वरुप संघ ३ नं. प्रदेश काठमाण्डौ महानगरपालिका सहकारीता सहअस्तित्व समन्वय

संघीयता एउटै भुगोल र एउटै जनतालाई फरक फरक बिषयमा भिन्न भिन्न तहका सरकारले शासन गर्ने व्यवस्था नै संघीय व्यवस्था हो

शासन व्यवस्था संघ संविधान र कानुनको अधिनमा रही नेपालको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा मन्त्रीपरिषदमा हुनेछ। (७५-२) प्रदेश संविधान र अन्य कानुनको अधिनमा रही प्रदेशको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा प्रदेश मन्त्रीपरिषदमा रहनेछ। (१६२-२) स्थानिय तह संविधान र अन्य कानुनको अधिनमा रही गाउँपालिका र नगरपालिकाको शासन व्यवस्थाको सामान्य निर्देशन, नियन्त्रण र सन्चालन गर्ने अभिभारा गाउँ कार्यपालिका र नगर कार्यपालिकाको हुनेछ। (२१४-३)

७५३

राज्यको मुल संरचना तीन तहको हुने छ (५६-१) संघ तह प्रदेश तह र स्थानीय तह

गाउँपालिका नगरपालिका र जिल्ला सभा स्थानीय तह (३०६ (१) ढ) गाउँपालिका नगरपालिका र जिल्ला सभा

राज्य शक्तीको प्रयोग (५६-२) संघ तह प्रदेश तह र स्थानीय तह

राज्य शक्ती (३०६-१-ज) राज्यको कार्यपालिका, व्यवस्थापिका र न्यायपालिका सम्बन्धी अधीकार, सो शब्दले अवशीस्ट अधिकार समेतलाई जनाउछ।

राज्य शक्तीको बाँडफाँड विधायनी कार्यकारीणी न्यायिक संघ संघीय व्यवस्थापिका (प्रतिनिधि सभा र राष्ट्रिय सभा) नेपाल सरकार सर्वोच्च अदालत प्रदेश प्रदेश सभा प्रदेश सरकार उच्च अदालत स्थानिय - गाँउ सभा - नगर सभा - गाँउ कार्यपालिका - नगर कार्यपालिका - जिल्ला अदालत - स्थानीय अदालत - न्यायिक समिती

राज्य शक्तिको बाँडफाँड संघ- अनुसुची- ५,७ र ९ प्रदेश- अनुसुची- ६,७ र ९ स्थानिय- अनुसुची- ८ र ९

ISSUES

Issue 1: Size and No. of local government Balancing functional responsibility and minimum efficient scale Balancing scale and proximity to the people Feeling of loss of political power

Issue 2: Interrelation between Federation, State and Local Level Hierarchical versus co-operative Are local governments a hierarchical units of the provincial level or federation? According to the constitution, each level has its own functions and responsibilities. The relations between the federation, states and local level shall be based on the principles of cooperation, co-existence and co-ordination

Relationship management mechanism The relations between the Federation, States, and Local level shall be based on the principles of: Cooperation Co-existence Coordination

Inter-State Council Constitution Prime Minister : Chairperson Minister of Home Affairs of GON : Member Minister of Finance of GON : Member Chief Ministers of concerned States : Member

Functions of Inter-State Council To settle political disputes arising between the federation and a state & between states

Inter-State Fiscal Council Inter-province Fiscal Management Act 2074 Minister of Finance (GoN) - Convener Minister of Finance (State) - Member 14 selected representatives from state- Member (1 Male, 1 Female selected by the state from among the chairperson and vice-chairperson, mayor and deputy mayor) d) 3 Financial Experts - Member (The group of experts with at least 1 female to be selected by the federal ministry) e) Secretary, Ministry (GoN) - Member Secretary

Functions of Inter-State Fiscal Council The council will advise the federation, state and the local level & facilitate their coordination on necessary subjects of inter-governmental fiscal management

Provincial Coordination Council Local Government Management Act Chief Minister - Convener Ministers (State Government) - Member Chief Secretary (State) - Member Secretary (State Government) - Member Chief and Deputy Chief - Member ( of District Coordination Council within a Province) f) Rural municipality and municipality - Member (Chairman and Vice-chairman & Mayor and Deputy Mayors from within a state) g) Secretary - Member Secretary (State Ministry overseeing local level)

Functions of Provincial Coordination Council The council will maintain coordination among the province and local level on subjects pertaining to - Functional harmonization - Strategic partnership in planning and management - Definition and implementation of concurrent rights - Utilization and allocation of natural resources

National Natural Resource and Fiscal Commission Management Act 2074 Provisions Coordination and Cooperation The commission can coordinate and cooperate with various constitutional bodies, the Government of Nepal, government agencies in local and provincial level or public agencies as needed

Role of 3 level of government 56-6 The three levels shall protect Nepal’s freedom, sovereignty, territorial integrity, independence national interest, overall development, multi-party, competitive, democratic, republican, federal system of governance, human rights and fundamental rights rule of law, separation of powers and check and balance egalitarian society based on pluralism and equality, inclusive representation and identity

Issue 3: Determination of No Issue 3: Determination of No. and Boundaries of Special, Protected and Autonomous Regions Criteria set by the government were changed amidst the work No. and boundaries of rural municipalities and municipalities were not public even during the last phases of the tenure of the commission Availability of data posed a major constraint Minorities and marginalized communities were not rigidly defined The restructuring was to be done within the boundary of local level, district and province

Issue 3: Determination of No Issue 3: Determination of No. and Boundaries of Special, Protected and Autonomous Regions Boundary based structure and non-territorial structure Exclusive structure and proportional inclusive principle Cultural, social and economic rights of the structure was ambiguous

Issue 4: Separation of powers and checks and balances Executive, legislative and judicial wing of the local government shall be led by the same representative The functioning and regulation of the local government comes under the purview of the following constitutional bodies: Commission for the Investigation of Abuse of Authority (CIAA) Auditor General ( Regularity, economy, efficiency, effectiveness and the propriety) Public Service Commission Democratization of democracy

Issue 5: Clarity on Functional Assignment -(i) Concurrent functions and exclusive functions Exclusive functions at different level eg: Tourism fee

Allocation of power Schedule-5 Federation Schedule-8 Local Schedule 7 Schedule-6 Province Schedule-8 Local Schedule 7 Schedule 9

EDUCATION HEALTH AGRICULTURE Federation Province Local Basic Health Basic and Secondary Education Basic Health Management of Agriculture Extension

Issue 5: Clarity on Functional Assignment -(ii) Fundamental rights International conventions Directive principles, policies and obligations of the state

Issue 5: Clarity on Functional Assignment -(iii) Exclusive function prevails over concurrent function In case of same exclusive function among two levels, principle of subsidiarity to be applied For division of concurrent function; Federal level: National policy, national standards Provincial level: Back office function, support function Local level: Front line service delivery

Issue 6: Fiscal Federalism Expenditure assignment Revenue assignment Inter-governmental fiscal transfer (Basis and Modality) Equalization grant Matching grant Conditional grant Special grant Borrowing Fiscal commission

Issue 7: Transitional Management ( Adjustment of Civil Servants) Nepal government can adjust civil servants at federal, state and local level (302-2) Employee’s interest and institution’s interest Issue of mobility of civil servants Issue of benefits Issue of previous local level staff and civil servants Issue of knowledge, skill and attitude of employees Capacity development programs No “ If and But”

Issue 7: Transition Management (Handover and take over) Physical facilities Programs and projects Process/ Procedure Out standings Audit irregularities Handover to the elected government

Issue 7: Transition Management (Continuity of service and delivery) Implemented by the government From headquarters From ward center

Issue 7: Transition Management (Clarity about Ward Service Centre) This is service delivery unit not the governing unit The role of ward committee regarding ward service Centre Functions of Ward Service Centre Service delivery unit below the Ward Service Centre

Issue 7: Transition Management (Risk Management) Political risk Contested political environment Adversarial politics Administrative risk Poor capacity Resistance Inertia/ Legacy Operational risk Proper sequencing of transition Lack of skill

Issue 8: Service Delivery Improvement (i) Joint Service Arrangement Local level headquarters Ward service center Service centre below the ward if necessary

Issue 8: Service Delivery Improvement (ii) Public administration cannot be transformed overnight Multi-skilled and multi-tasked staffing Smart civil servant Efficient staffing Continuous training Training for all

Issue 9 Gerrymandering (i) Political Gerrymandering Resource based Gerrymandering Forest Water Land-fill site Grazing land Center based Gerrymandering Cultural Gerrymandering

Issue 9 (ii) Yarsagumba (Caterpillar fungus) based Gerrymandering(yarsamandering)

Issue 10 Provincial Headquarters

Issue 10 Provincial Headquarters Geographically Centroid Province 1: Dhankuta and Bhojpur Province 2: Mahottari and Sarlahi Province 3: Kathmandu Province 4: Kaski Province 5: Pyuthan and Dang Province 6: Jumla Province 7: Doti

Issue 11 Mindset Different acts Guidelines Administrative decisions Local governments’ perception

अन्तरसरकारी वित्त व्यवस्थापन सम्बन्धमा व्यवस्था गर्न बनेको ऐन( २०७४) नेपाल सरकार, प्रदेश र स्थानिय तह भनिएको छ । संविधानको धारा ५६ ले नेपालको मुल संरचना संघ, प्रदेश र स्थानिय तह गरी तीन तहको हुनेछ भनेको छ । यहाँ राज्य संरचना मध्येको दुई वटा तह प्रदेश र स्थानीय लेखियो। तर संघ तहको हकमा भने कार्यकारिणिको नाम लेखियो । नेपालको संविधानको धारा ७५को उपधारा ३ ले ”नेपालको संघीय कार्यकारिणि सम्बन्धी सम्पूर्ण काम नेपाल सरकारको नाममा हुने छ ।” भनेको छ । यो ऐनले ठाँउ ठाँउमा नेपाल सरकार, प्रदेश र स्थानीय तहले कर उठाउने, दण्ड, जरिवाना उठाउने र गैर करको दर तोक्ने सम्मको अधिकार दिएको देखिन्छ ।

उठेका प्रश्नहरु नेपाल सरकार, प्रदेश र स्थानिय तह ? तीन तहको बिचमा राजाश्वको बाँडफाँड, अनुदान, ऋण लगायतका विषयहरु राष्ट्रिय प्राकृतिक स्रोत तथा वित्त आयोगको सिफारिसमा गर्नु पर्ने संवैधानिक बन्दोबस्त ?

अन्तरसरकारी वित्त व्यवस्थापन सम्बन्धमा व्यवस्था गर्न बनेको ऐन( २०७४) यो ऐनको दफा ५(१)मा नेपाल सरकार, प्रदेश वा स्थानीय तह मध्ये कुनै दुई तहले उठाउने भन्ने वाक्यांस प्रयोग गरिएको छ । उठेका प्रश्नहरु संविधानतः नेपाल सरकारले राज्यको मुल संरचनाको कुनै तहलाई प्रतिनिधित्व गर्दैन। नेपाल सरकार तह भन्ने बन्दोबस्त कतै गरिएको छैन ?

अन्तरसरकारी वित्त व्यवस्थापन सम्बन्धमा व्यवस्था गर्न बनेको ऐन( २०७४) “नेपाल सरकारले संघीय कानुन बमोजिम प्राकृतिक स्रोतमा रोयल्टी लगाउन र उठाउन सक्ने छ ।” भनी ऐनको दफा ३ को उपदफा ६ मा लेखिएको छ । प्राकृतिक स्रोतबाट प्राप्त रोयल्टी अनुसूची ९को बुंदा १४मा रहेको छ जुन तिनै तहको साझा अधिकार हो । उठेका प्रश्नहरु यसमा संघको धारणामात्र प्रतिविम्बित हुन गएको छ । राष्ट्रिय प्राकृतिक स्रोत तथा वित्त आयोगको सिफारिसमा गरिनु पर्दथ्यो। अत: यहाँ सहकार्य, समन्वय र सह अस्तित्वको सिद्दान्तमा आधारित भै सामूहिक निचोडमा पुग्नु पर्ने देखिन्छ ।

Issue 12 Twilight Why this metaphor? Past has not gone fully New is yet to come Twilight Evening twilight(dusk) Morning twilight(dawn) What to do? Worship Do not eat Destroy evil

Issue 13 National Natural Resources & Fiscal Commission Political appointment Lack of information

Issue 14 Focus of Media Reporting

Elected reps, govt staff in tug of war Kathmandu, January 28 . A few months ago, a secretary of a rural municipality was taken aback when the chair of the local level asked him to milk his buffalo, give it fodder and cook food for him. The secretary had gone to the rural municipality chair's house to discuss development issues, policy and programmes of the local level. Chair of the rural municipality, however, told him that he was busy as he was going to attend a function at his in-laws' house. He asked the secretary to wait until he returned. This made the secretary feel humiliated. This is just a representative case. In the last few months, clashes and tussles between elected representatives of the local levels and government officials have been reported from across the country. Some of the elected local representatives reportedly thrashed staffers for not obeying them. Employees serving at the local levels too complain that they are under intense pressure from elected representatives to breach the laws. “We turn the calendar at least once a month, but the elected representatives have not even once flipped through the guidelines since they took charge,” an engineer at Kathmandu Metropolitan City told THT on condition of anonymity. He said representatives even pressurised them to approve designs of buildings in violation of the guidelines. “We have to be accountable, but they pressurise us to follow their directives,” complained the engineer..

Elected reps, govt staff in tug of war Kathmandu, January 28 . Executive Officer at Lalitpur Metropolitan City Hari Prasad Dahal said local level staffers had been encountering a lot of challenges in changed context. “Both technical and administrative staff are having a hard time carrying out their duties,” said Dahal, adding that local level staffers have to be accountable and follow rules and regulation. Dahal, however, said staffers at LMC did not encounter such problems.. Spokesperson at the Ministry of Federal Affairs and Local Development Rudra Singh Tamang said both elected representatives and government employees should try to adjust themselves in the changed circumstances. “They should understand each other's role and settle disputes,” said Tamang. He said government employees had to be accountable to their duties and responsibilities. . Balananda Paudel, who was the chief of the now-defunct Local Level Restructuring Commission, said government employees should be loyal to the local government and elected representatives also should not make government staffers do their household chores. “Problems may arise as government employees ran the local levels for about 15 years,” said Paudel. He also attributed the tussle between elected representatives and staffers to the government move to send employees on deputation in most of the places. “Government staffers do not feel obliged to obey elected representatives as they do not have to stay for long there,” added Paudel. He said tussles between elected representatives and government employees could be resolved by organising orientation programmes and training.

Issue 15 Capacity Capacity Individual Organizational Institutional Functional Technical Organizational Institutional Societal Supply side Demand side

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