Skip to main navigation Skip to search Skip to main content

Decentralization dilemma: Intergovernmental fiscal transfer and local accountability in Nepal

Keshav K Acharya, Habib Zafarullah

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

Abstract

Intergovernmental fiscal transfer (IGFT) is a crucial budgetary tool in the federal governance system in Nepal. It helps bridge the fiscal gap between income and expenditure, maintains fiscal capacity balance, and supervises local government performance and accountabilit. Principles of cooperation, coexistence, and coordination guide its operations, fostering constructive collaboration between federal, provincial, and local governments. This cooperation leads to improved coordination and the achievement of the nation's constitutional goals. The purpose of this chapter is to examine the effectiveness of the Intergovernmental Fiscal Transfer (IGFT) in Nepal, focusing on its role in promoting accountability within the local government system across vertical and horizontal scales. It covers mobilization as an instrument of IGFT, fiscal equalization through conditional, special, and matching grants, and local-level revenue generation. The chapter highlights the effectiveness of decentralization from the perspective of IGFT.

Original languageEnglish
Title of host publicationMaking Democratic Decentralization Work in South Asia
EditorsDurga P Chhetri, Prabhat Kumar Datta, R. Lalitha S. Fernando, Aly Shameem
Place of PublicationCham, Switzerland
PublisherSpringer
Pages147-170
ISBN (Print)9783031944673, 9783031944703, 9783031944680
DOIs
Publication statusPublished - 27 Sept 2025

Publication series

NameSouth Asian Public Administration

Fingerprint

Dive into the research topics of 'Decentralization dilemma: Intergovernmental fiscal transfer and local accountability in Nepal'. Together they form a unique fingerprint.

Cite this