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The Practice of Fiscal Federalism in Nepal: Critical Policy Issues and Reform Space


In its 2020 Article IV consultation report prepared by the IMF for Nepal, the Fund had a stark cautionary note for the country: “Fiscal policy should remain prudent, and the transition to fiscal federalism carefully managed.” (IMF. 2020. Nepal: 2019 Article IV Consultation – Press Release; Staff Report; and Statement by the Executive Director for Nepal. April 6, 2020). This book looks at several critical policy issues that dominate the fiscal federalism debate in Nepal, and argues that given several Type 1 risks evident on the ground, the reform space in this arena is indeed constrained.

(The authors are associated with NPI and Government of Nepal respectively)

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