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E C O N O M Y


 Kathmandu Wednesday January 29, 2003  Magh 15,  2059.


Fiscal competencies of local bodies emphasised

By A Staff Reporter

KATHMANDU, Jan. 28: While the government is bracing for the amendment of the Local Self-Governance Act- 2055 and the Local Self Governance Regulations, ex- representatives of various local bodies across the country have expressed serious concern over the fiscal rights of the local bodies.

They also questioned the 'government's motive' behind amending the Local Self- Governance Act - 2055 and its Regulations at a time when 'people's representatives are absent' and the rights of people are 'seized'.

The present government has already curtailed fiscal rights of the local bodies and it has concentrated on 'central government'.

Most of the local bodies are non- functional and the spirit of decentralisation has been trampled which created a vacuum in the entire mechanism of democracy and decentralisation, said Rajendra Prasad Pandey, a former member of the dissolved House of Representatives.

"If the government is amending the Local Self Governance Act and its Regulations, it has to widen the fiscal rights of the local bodies so as to strengthen the real spirit of decentralisation," he added.
Speaking at a programme organised by the Association of District Development Committee Nepal (ADDC-N) Pandey said that consolidation of democracy is not possible without strengthening devolution of power to the local bodies.

Another former legislature Hom Nath Dahal said that the fiscal rights of the local bodies in the Local Self Development Act and its Regulations should be ensured. He also accused the government of undermining the values of democratic norms.

Democracy cannot flourish in the absence of people's participation; therefore empowerment of local body is essential.

Dahal also urged the government to empower the local bodies.

Secretary at the Ministry of Local Development Khem Raj Nepal said that the "decentralisation' is a political issue, therefore it requires political consensus and understanding."

He further said that the government is always positive to make decentralisation more effective. Amendment of the Act is essential in order to make it timely and result oriented.

President of the ADDCN, Krishna Prasad Sapkota pointed out the need to make the Act more democratic. The government has shackled the fiscal rights of the local bodies, he said and asked " How can a nation make progress when the power is concentrated at the central level authority?"
Participants at an interaction programme also expressed their views that the situation would not have been be so bleak if term of the local bodies had been extended for the period of one year as per the Act. They also accused the past government led by the then Prime Minister Sher Bahadur Deuba of triggering such difficult situation.

Some of the participants also blamed the ADDCN for not taking initiatives to press the then government to give continuity to the local bodies. "It is useless cry over spilled milk now," they remarked.

The then Deuba government had announced that the term of local bodies would be over by July 17. 2002.

Political analysts say that the Deuba government took that decision with the assumption of holding the local elections before 2003. However, the situation took a different turn when the Deuba government was toppled in October 2002 (Ashwin 18).

Considering the present situation various donor agencies are reviewing their programmes, said an expert.

According to the ADDCN, it will submit its conclusion of the today's discussion to the Ministry of Local Development.

The ADDCN that is heavily supported by various donor agencies has not taken any initiatives to stage any awareness programmes outside the capital city, the critics say.


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