Publication: Nepal Fiscal Federalism Update, June 2023
Loading...
Date
2023-06-30
ISSN
Published
2023-06-30
Author(s)
Editor(s)
Abstract
The World Bank Nepal Fiscal Federalism Update aims to report annually on the progress of fiscal federalism in Nepal and identify implementation gaps. This first such update reviews the progress on fiscal federalism since the publication of the Federalism Capacity Needs Assessment (FCNA) in 2019.
Link to Data Set
Citation
“World Bank. 2023. Nepal Fiscal Federalism Update, June 2023. © World Bank. http://hdl.handle.net/10986/39949 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Fiscal Federalism and Regional Growth : Evidence from the Russian Federation in the 1990s(World Bank, Washington, DC, 2003-09)Subnational fiscal autonomy-the basis for fiscal federalism in modern federations-is meant to serve two roles. First, local control over revenue collection is meant to provide a check on the capacity of central authorities to tax arbitrarily local capital. Second, retention of taxes raised locally is meant to establish incentives for subnational governmental authorities to foster endemic economic growth as a way of promoting local tax bases. But in the Russian Federation, fiscally autonomous regions have often resisted market-oriented reforms, the enactment of rules protecting private property, and the dismantling of price controls and barriers to trade. The authors find statistical evidence in support of the hypothesis that fiscal incentives of the Russian regions represent an important determinant of regional economic performance. The authors also seek to understand the conditions under which fiscal autonomy prompts regional growth and recovery, and the conditions under which it has adverse economic effects. They argue that the presence of "unearned" income streams-particularly in the form of revenues from natural resource production or from budgetary transfers from the central government-has turned regions dependent on these income sources into "rentier" regions. As such, governments in these regions have used local control over revenues and expenditures to shelter certain firms (natural resource producers or loss-making enterprises) from market forces. Using new fiscal data from 80 Russian regions from 1996-99, the authors test this central hypothesis in both single- and simultaneous-equation specifications. Their results indicate that tax retention (as a proxy for fiscal autonomy) has a positive effect on the cumulative output recovery of regions since the breakup of the Soviet Union. But they also find that this effect decreases as rentable income streams to regions increase.Publication Nigeria - A Fiscal Agenda for Change : Public Expenditure Management and Financial Accountability Review, Volume 2. Executive Summary(Washington, DC, 2007-05-25)This report reviews the trends in expenditure patterns in public financial management (PFM) in Nigeria since 2001, and assesses the impact thus far of the ongoing government reform efforts. The public expenditure management and financial accountability review (PEMFAR) covers areas that have been traditionally undertaken by separate Bank reports such as the public expenditure reviews (PER), the country financial accountability assessment (CFAA), and the country procurement assessment review (CPAR). This analysis covers fiscal policies and performance at both federal and state government levels. The PEMFAR is a consolidated diagnostic tool designed to enhance Bank, development partners' and member countries' knowledge of PFM arrangements and reform challenges. The core objective of the Nigeria PEMFAR is to advise the Government (federal and participating states) on how (i) to better focus and sequence its PFM, including the procurement reform agenda within a broader economic reform framework, and (ii) identify directions and instruments of restructuring its expenditure patterns on both macro and sectoral levels. The PEMFAR also aims to inform international development partners on how they could provide more efficient support for the PFM reforms in Nigeria by identifying the main bottlenecks within the existing reform process.Publication Kenya Economic Update, June 2014, No. 10 : Take Off Delayed?(Washington, DC, 2014-06)Kenya's economy remains strong, enabling it to weather the headwinds it faces. Maintenance of macroeconomic stability and adherence to credible policies has underpinned Kenya's growth in the past. Continuing to adhere to these policies will help the country surmount domestic shocks, allowing it to grow 4.7 percent a year in 2014 and 2015. Addressing the pressures emerging from fiscal expansion is a priority. The large public sector wage bill and devolution have reduced fiscal buffers and increased fiscal risks. Kenya's health outcomes are not commensurate with its aspirations of achieving middle income status. Global evidence indicates that investing in primary health care is the most cost-effective way to improve health outcomes. Key recommendations to stabilize and sustain a robust growth include: (a) deepening fiscal consolidation without reducing infrastructure spending; and (b) expanding the engines of growth to include not only consumption but also investments and exports. Key recommendations that can help Kenya improve the delivery of primary health care include: (a) focusing first on making existing public primary health care facilities operational; (b) building on partnerships with faith-based organizations and partner with the private sector; and (c) the use of fixed facilities, such as inpatient services in many health centers that are grossly underutilized.Publication Brazil : Issues in Fiscal Federalism(Washington, DC, 2002-06-04)The globalization of financial markets, has increased international pressure on the federal governments to maintain a hard budget constraint, with respect to sub-national governments. Because growth in sub-national deficits undermines investor confidence, the federal government is under pressure to enforce the new debt control system, if only to keep the foreign investment flowing, and, political support for enforcement of the fiscal rules may also have increased. Nevertheless, there is the case for shifting the system of sub-national debt control from one that depends on central regulation, to one that relies more on markets. The report looks at institutional models for doing so, which include bond markets, and specialized banks. If the market model is to prevail in Brazil, changes in the credit environment must occur: private long term funds must become available, at interest rates compatible with infrastructure investment returns. But continued macroeconomic stability, and declining federal deficits are required before implementing the market model; private lenders must have a level playing field, and, limitations on subsidized government lending is necessary to attract private sector interest; the federal government should refrain from extending implicit guarantees on private loans to sub-national governments, while establishing a pattern of non-interference in sub-national defaults to private banks; and, reforms should remove obstacles that prevent sub-national governments from becoming creditworthy. Likewise, the growing state pension liabilities challenges the present system of fiscal controls.Publication Intergovernmental Fiscal Systems and Development Aid(World Bank, Washington, DC, 2010-05)This paper reviews the experiences of intergovernmental fiscal systems (IGFS) to look for possible lessons for how Official Development Assistance (ODA) is delivered. Specifically, it compares IGFS and ODA in two specific respects. The first is the proportion of public resources that central governments make available to sub-national governments on a conditional basis, and how that compares with the proportion of non-earmarked ODA given to low income countries. The second is the role of performance outcome in resource allocation to sub-national governments and how that compares with the role of performance in ODA, particularly multilateral ODA allocation. The comparisons show that: (i) the share of earmarked ODA is more than three times higher than that of conditional grants in intergovernmental systems, suggesting that donors in ODA rely more on earmarking to influence the spending decisions of the recipient countries than their federal governments do on conditional grants to induce policy changes in their own sub-national governments; and (ii) none of the OECD countries currently use outcome measures in determining resource allocation to their sub-national governments for a variety of good reasons, and the recent debate as to whether multilateral ODA allocation should be based on development outcomes seems to ignore this experience.
Users also downloaded
Showing related downloaded files
Publication Global Economic Prospects, June 2023(Washington, DC: World Bank, 2023-06-06)Global growth is projected to slow significantly in the second half of this year, with weakness continuing in 2024. Inflation pressures persist, and tight monetary policy is expected to weigh substantially on activity. The possibility of more widespread bank turmoil and tighter monetary policy could result in even weaker global growth. Rising borrowing costs in advanced economies could lead to financial dislocations in the more vulnerable emerging market and developing economies (EMDEs). In low-income countries, in particular, fiscal positions are increasingly precarious. Comprehensive policy action is needed at the global and national levels to foster macroeconomic and financial stability. Among many EMDEs, and especially in low-income countries, bolstering fiscal sustainability will require generating higher revenues, making spending more efficient, and improving debt management practices. Continued international cooperation is also necessary to tackle climate change, support populations affected by crises and hunger, and provide debt relief where needed. In the longer term, reversing a projected decline in EMDE potential growth will require reforms to bolster physical and human capital and labor-supply growth.Publication State and Trends of Carbon Pricing 2024(Washington, DC: World Bank, 2024-05-21)This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national, and subnational initiatives. It also investigates trends surrounding the development and implementation of carbon pricing instruments and some of the drivers seen over the past year. Specifically, this report covers carbon taxes, emissions trading systems (ETSs), and crediting mechanisms. Key topics covered in the 2024 report include uptake of ETSs and carbon taxes in low- and middle- income economies, sectoral coverage of ETSs and carbon taxes, and the use of crediting mechanisms as part of the policy mix.Publication World Development Report 1984(New York: Oxford University Press, 1984)Long-term needs and sustained effort are underlying themes in this year's report. As with most of its predecessors, it is divided into two parts. The first looks at economic performance, past and prospective. The second part is this year devoted to population - the causes and consequences of rapid population growth, its link to development, why it has slowed down in some developing countries. The two parts mirror each other: economic policy and performance in the next decade will matter for population growth in the developing countries for several decades beyond. Population policy and change in the rest of this century will set the terms for the whole of development strategy in the next. In both cases, policy changes will not yield immediate benefits, but delay will reduce the room for maneuver that policy makers will have in years to come.Publication Europe and Central Asia Economic Update, Fall 2024: Better Education for Stronger Growth(Washington, DC: World Bank, 2024-10-17)Economic growth in Europe and Central Asia (ECA) is likely to moderate from 3.5 percent in 2023 to 3.3 percent this year. This is significantly weaker than the 4.1 percent average growth in 2000-19. Growth this year is driven by expansionary fiscal policies and strong private consumption. External demand is less favorable because of weak economic expansion in major trading partners, like the European Union. Growth is likely to slow further in 2025, mostly because of the easing of expansion in the Russian Federation and Turkiye. This Europe and Central Asia Economic Update calls for a major overhaul of education systems across the region, particularly higher education, to unleash the talent needed to reinvigorate growth and boost convergence with high-income countries. Universities in the region suffer from poor management, outdated curricula, and inadequate funding and infrastructure. A mismatch between graduates' skills and the skills employers are seeking leads to wasted potential and contributes to the region's brain drain. Reversing the decline in the quality of education will require prioritizing improvements in teacher training, updated curricula, and investment in educational infrastructure. In higher education, reforms are needed to consolidate university systems, integrate them with research centers, and provide reskilling opportunities for adult workers.Publication Supporting Youth at Risk(World Bank, Washington, DC, 2008)The World Bank has produced this policy Toolkit in response to a growing demand from our government clients and partners for advice on how to create and implement effective policies for at-risk youth. The author has highlighted 22 policies (six core policies, nine promising policies, and seven general policies) that have been effective in addressing the following five key risk areas for young people around the world: (i) youth unemployment, underemployment, and lack of formal sector employment; (ii) early school leaving; (iii) risky sexual behavior leading to early childbearing and HIV/AIDS; (iv) crime and violence; and (v) substance abuse. The objective of this Toolkit is to serve as a practical guide for policy makers in middle-income countries as well as professionals working within the area of youth development on how to develop and implement an effective policy portfolio to foster healthy and positive youth development.