WHERE WE STAND ACTUALLY?

DELIBERATE BETWEEN DETERMINANTS

OF FISCAL FEDERALISM AND ECONOMIC
WELFARE IN NEPAL: AN EMPIRICAL
ANALYSIS

BY:

SATYA R. JOSHI

KATHMANDU UNIVERSITY
7/5/16

STRUCTURAL DESIGN OF MY WHOLE RESEARCH

CHAPTER ONE: RATIONALE- KNOWING DIFFERENTLY: SETTING THE SCENE

CHAPTER TWO: THEORETICAL FRAMEWORK AND EMPIRICAL EVIDENCE

CHAPTER FOUR: WHERE WE STAND ACTUALLY? FACES BEHIND FISCAL

FEDERALISM IN NEPAL
CHAPTER FIVE: THE PARADOX OF FISCAL FEDERALISM AMENDMENTS IN
NEPAL
CHAPTER- SIX: RESOURCE MOBILIZATION, REVENUE ALLOCATION,
EXPENDITURE TASKS AND FISCAL ISM IN THE CASE OF NEPAL: ISSUES,
CHALLENGES AND POLICY OPTION

7/5/16

CHAPTER THREE: METHODOLOGICAL QUEST: AN EMPIRICAL ANALYSIS

CHAPTER:VII CONCLUDING MY RESEARCH LANDSCHAPS WITH SUMMARY

AND SOME RECOMMENDATIONS

REFERENCES

CLARIFYING THE AGENDA

WHAT IS FEDERALISM?

Federalism Two or more governments exercise

power and authority over the same people in the
same territory
OR the relationship between the federal
government (circle) and the state governments
(squares)

CLARIFYING THE AGENDACOND.

7/5/16

Then, what is fiscal federalism?

Fiscal Federalism" concerns the division of public
sector functions and finances among different tiers of
government.
fiscal federalismis concerned with "understanding
which functions and instruments are best centralized
and which are best placed in the sphere of decentralized
levels of government." it is the study of how
competencies (expenditure side) and fiscal instruments
(revenue side) are allocated across different (vertical)
layers of the administration thereby ultimate utilization
4
of natural resources.

Centralized

Fiscal
Federalism

Decision on
Fed. Taxes

Decision on
most Taxes
Fed

Province

Local

Budget
Budget contr.
No autonomy
Income
Expenditures

No autonomy
Income
Expenditures

Decentralized

Vertical
Equalization

Horizontal
Vertical
Equalizat.

Horizontal
Equaliz.

Fed. Budget

Autonomy Income
Autonomy Budget

Autonomy Income
Autonomy Budget

CHAPTER-I
RATIONALE- KNOWING DIFFERENTLY: SETTING THE SCENE

7/5/16

RESEARCH INTRODUCTION:
Going beyond the history of Nepal, decentralization has been a
key policy for every government since 1950s and it has been
taken as a strong policy tool for equitable resource allocation and
poverty reduction ambition (NPC report, 2013).
Formally the constitution of Nepal (2015) declare the clear
provision towards federalized structure of nation. i.e. Article
56(2) declares ; The State powers of Nepal shall be used by the
federal, provincial and the local level in accordance with this
constitution.
Under this scenario, this investigation attempts to identify the
major determinants of fiscal federalism amendment in Nepal
within present geopolitical strata and macro economic
6
frameworks.

PROBLEM STATEMENT (RE/CONSTRUCTING PAST EXP...

A small multi-ethnic, multilingual and multi-confessional

nation shaped by the will of its people.
Cluster (ethnic) based demands and lack of political unity
and integrity (i.e. Tarai-Madesh based party does not
takes the ownership of present federal model.
absent of suitable mechanism of natural resources
treatment .
vertical and horizontal
disparities exists
(only 8 district collect
Approx.85% tax
revenue)
Lack of proper model.

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7/5/16

SIGNIFICANCE AND PURPOSE OF THE

STUDY
Significance of the Study

To understand and characterize overall

economic status of Nepal with special
reference to some selected
macroeconomic indicators.

7/5/16

-It is macro- economic investigation this

inquiry tries to decisively significance to the
pros and cons of the fiscal ism dogma of Nepal
based on the salient features of 2015s
constitution of Nepal and attempts to
recommend the adjustment required in the
model by analysing the actual geo-political and
macroeconomics strata of the nation.
bridging between the localization and
globalization of knowledge for fiscal
federalism and its pros and cons
through humanistic practices in the
Nepalese setting.
Significance to policy formulators and
academically professional.
Significance to government bodies and
policymaker such as National Plan
commission.
Interested outside parties such as NGOs,
INGOs, academic researchers, scholars,
involved learners, professionals.
Significance social researcher etc.

Purpose of the study

To examine the key economic policy

towards effective fiscal arrangements,
revenue allocation strategy or taxation,
expenditure assignment and resource
mobilization authority under the salient
features of the newly promulgated
constitution of Nepal(2015).
To explore and identify vertical and
horizontal imbalances obligation those
have been foster viable fiscal
arrangements in Nepalese context;
To provide some recommendation
8
options that may helps to execute the
reasonable fiscal rearrangements in
Nepalese context, etc.

RESEARCH QUESTIONS

Is federalism improves national holistic

economic welfare? If so, what types of fiscal
federalism strategy towards national economic
welfare?

Could present constitutional (fiscal)

arrangements can pilots for significant macroeconomic welfare in Nepal? If so, What are the
salient feature of present constitution towards
effective fiscal arrangements, revenue allocation
strategy, expenditure responsibilities, and
research mobilization authority?
9

7/5/16

Where we stand actually?

-This question related to overall macroeconomics status of Nepal.

What are the major economic agenda of Nepalese federalizing process?

-This question typically deliberated on the matter regards; considerable
factors and their impacts on fiscal reform.

CHAPTER TWO
THEORETICAL FRAMEWORK AND
EMPIRICAL EVIDENCE
Third eye review: Thematic vs. Theoretical
review

Thematic
Review

Theoretical
Review

Third-wave
Review

Literature Review

Thematic ideology (Standpoint)

Gain knowledge related to fiscal federalism theory and tries to
connect in Nepalese socio-economic setting.
Connecting cross-country Experiences
First and second generation theory of fiscal
federalism
Data sources: Several books, articles, internet sources,
journals and dissertation paper available in Nepalese
(some extends international context) were studied.

RESEARCH GAP AND THEORY OF CHANGE

- Classical Theories

First generation theory

of fiscal Federalism

Second generation
theory of fiscal
Federalism

- Realistic connection of National level

holistic economic welfare

ASSUMPTIO
NS

- Support from both prospective

7/5/16

ALIGNMENT
ASSUMPTION
S

Most Recent Theories and Practices

Federalism in multi dimensional faces; i.e. political, administrative, judicial, fiscal

(poligovernance perspectives)
Putting centre at humanitarian wish and holistic prosperity (equality perspectives)
Semi-sovereignty rights of resources (equity perspectives)
ASSUMPTI
ASSUMPTI
ONS
ONS

Ideology gap
Perception gap
Political belief and
demands gap
Vertical and
horizontal gap
Resources
utilization gap
Normative and
empirical gap

Impact on national economic welfare

Foster sustainable development
Equal and balanced development
Positive trade-off between fiscal federalism and
economic welfare

11

Theoretical ideology of Fiscal Equalization In Nepal

Federal

Authority

province

province

Horizontal

province

Vertical

ra
nt
s

province

RESEARCH METHODOLOGY

Research design: -both

descriptive and analytical, ex-post
factor research
-qualitative and empirical
methodology (Paradigm) is used
Population and Sample: Overall
Nepalese scenario
Context-based research ideology
( phenomenological research rigor)

4 criteria of Research
Design

1.
2.
3.
4.

Orientation,
Strength,
Depth and
Richness (Van
Manen, 1988)
Source

Paradigm

Goal

Research

Auto/ethnography is a legitimate way of establishing intersubjectivity that escapes the false dichotomy opposing
subjectivism and objectivism. (Luitel, et. all, 2009).
Autoethnographic research method is an insiders methodology in
which my personal and professional experiences become the key basis
for this inquiry (Ellis, 2009, p. 35).
Autoethnography combines ethnographic and autobiographic
14
perspective to direct the researcher's heartfelt inquiry into the historical
roots of his/her own cultural identity (Joshi, 2013).

7/5/16

AUTOETHNOGRAPHIC INTROSPECTION IN MY
RESEARCH: A METHOD OF INQUIRY
Knowledge = self + culture (practices) and vice-versa.
Universal Paradigm
Auto
Based on researchers
Graphy
Autoethnography
Action (sometime quantitative
as well)
Ethno

Data Presentation and Analysis

7/5/16

In the process of data analysis and data plot, data are presented with
the help of tables, bar diagrams, pie chart, figures and other diagrams
and analyzed in descriptive manner according to the requirement of
the study. The description is given the table so that it will be easy to
understand.
Phenomenology: Investigation of phenomenon practiced and purposed in
Nepalese context.

Multiple Genre: Representation of different subjective layers through textual

construction (Data, table and picture)
Envisioning : Going beyond critiques and finger pointing
To interpret the pedagogical culture and context ,to reflect
the situation critically, develop the vision of transformative 15
ideology for federalized sensitive fiscal policy

MY DATA SOURCES

Who?

What ?

Why?
Why not?

When ?
How ?

lived and learn experiences(Facts, practices... from Nepalese context

16

7/5/16

Data generation rather than data collection

Reflection on the critical moments of Nepalese fiscal reforms
( somewhere political amendments also dealt..)
Professional/personal experiences
Constructed data from various sources (Global to Nepalese context)
Pictures from my past experience (contextual monologues and dialogues)

CONSTRUCTING MULTI-PARADIGMATIC RESEARCH SPACE

Objectivism (beyond text construction)
-Shadow Paradigm

Integralism

Quality standards:
Transparency and openness
regarding the aims and
processes of the research
Processes are derived from
comparable research schemes,
i.e. articulated, context based
research, and methods drawn
from grounded theory.

Postmodernism
By using most recent global perspectives of
reality towards research rigor

Interpretivism
-Inter/subjectivity
-Focus on Researchers Action

Research logics and genres:

Narrative genres and logic as a

generator of ideology (i.e. Fiscal
theories)
Dialectical genres and logic for
representation of antonyms voices
Metaphorical Logic for multischema analysis and envisioning
Non-linguistic genres and logic for
17
the illumination of meaning

7/5/16

Criticalism
Emancipation/critical self-empowerment
Why/what/Who/How???
transformative ontology of critical selfhood

CHAPTER-IV
WHERE WE STAND ACTUALLY? FACES BEHIND FISCAL
FEDERALISM IN NEPAL

The main treatise of this chapter lays an actual ground and

provides a motivation for the theoretical strata and
macroeconomic scrutiny that will build muscular platform
of this inquiry.)
Identifying various disparities and connecting it for fiscal
18
federalism amendments in Nepal

7/5/16

R.Q.Where we stand actually?

-This question related to overall macroeconomics status of Nepal.

What are the major economic agenda of Nepalese federalizing process?

-This question typically deliberated on the matter regards; considerable factors and
their impacts on fiscal reform.

THREE GUIDING PRINCIPLES OF

NEPALESE FEDERALISM

Subsidiarity

a new expression for an old principle

Every task shall be accomplished on the lowest possible
level

Fiscal Equivalence

Who takes profit pays, who pays decides

Direct democracy

Elections
Voting
Peoples initiatives
Referendums
Petitions

19

STRONG AND WEAK POINT OF PRESENT

CONSTITUTIONAL ARRANGEMENTS

Strong

points

relatively low
tax burden in LGs
Good identity of the
citizens with their
provinces
Strong natural
resources capacity
between the Provinces
Differences in the
geographic and ethnoidentity

Weak points
Slow

and unclear
political system
Tax burden between the
provinces differs to
much
Many inefficiencies, due
to wrong incentives in
the transfer system
Creeping centralization
Differences in the
service level
Vague horizontal and
vertical fiscal gap exist

20

Seems

LOWER CAPITAL EXPENDITURE

7/5/16

Some Issues
Lower expenditure: Average
spending in 3 years does not
reach 80% of allocation
70.7% in FY 2012/13
82.6% in FY 2013/14
86.1% in FY 2014/15 (projection
based on Government GFS Data
expenditure)
Capital expenditure skewed
towards end of FY
Out of total capital
expenditure, 73% in FY 2011/12
and 75% in FY 2012/13 made in
last trimester of the Fiscal Year

21

RATIO OF TAX AND NON TAX REVENUE

WITH GDP
%
7/5/16

Fiscal Year Tax revenue -GDP Non Tax revenue GDP Revenue
Ratio
ratio
change
2.8
22.7
2009/2010 10.4
2.7
33.3
2010/2011 11.8
1.5
27.2
2011/2012 11.4
1.5
23.1
2012/2013 13.0
2.1
21.2
2013/2014 13.9
2.2
22.3
2014/2015 15.3
1.1
(19.4)
2015/2016 12.4

Notes
1. The Table of FY 2014/15 is revised, FY 2015/16 is just preliminary and
remaining is actual.
2. Source: Economic Survey of various fiscal years, Government of Nepal,
Ministry of Finance
22

Constitutional Basis of Expenditure Assignment

Table 6.3 Constitutional Basis of Expenditure Assignment
Expenditure Category

Service
Responsibility

Provision of Service

Comments

Benefits/costs are national

Defence

Benefits/costs are national

International trade

Benefits/costs are national

Banking and currency

Benefits/costs are national

Environment

Benefits/costs are national

Internal commerce

Benefits/costs are national

Immigration

Benefits/costs are national

Airways/railways

Benefits/costs are national

Industry and agriculture

Significant interprovincial spillover

Education

F,P,L

P,L

Transfers in kind

Health

F,P, L

P,L

Transfers in kind

Social welfare

F,P,L

P,L

Transfers in kind

Police

F,P, L

P,L

Primary local benefits

Highways

F,P,L

P,L

Promotes a common market

Natural resources

F,P, L

P,L

Promotes a common market

7/5/16

Foreign affair

Notes: F = federal, P = Province, L = local

Source: Researchers construction with the help of Constitution of Nepal (2015)

23

Nepals Federal, Province and Local Tax Jurisdiction and Assignment

Present status of proposed provinces
Legal Jurisdiction

Collection

Retention

Import duties

Federal

Federal

Federation account

Excise duties

Federal

Federal

Federation account

Export duties

Federal

Federal

Federation account

Mining rents & royalty

Federal

Federal

Federation account

Hydro-electronic profits tax

Federal

Federal

Federation account

Capital gains tax

Federal

Province

Province

Personal income tax

Federal

Federal

Federal account

Personal income tax: armed & police forces, external affairs officers, non-residents

Province

Province

Province

Capital transfer tax (CTT)

Province

Province

Province

Value added tax

Federal

Federal/Province

Federal/Province

Company tax

Federal

Federal

Federal

Property tax and ratings

Province

Province-Local

Province-Local

Stamp duties

Federal

Province

Province

Gift tax

Federal

Province

Province

Licenses and fees

Local

Local

Local

Motor park dues

Local

Local

Local

Motor vehicle

Province

Local

Local

Entertainment tax

Province

Local

Local

Land registration and survey fees

Federal

Province

Local

Market and trading license and fees

Province

Local

Local

Tourism Charge

Province

Province

Province

Pools betting and other betting taxes

Province

Province

Province

Entertainment tax

Province

Local

Local

7/5/16

Scenery of Taxation

24

Source: (Socialism-oriented Federal Republic of Nepals Constitution (2015)

Note: Researchers construction

Major problem of fiscal federalism in Nepal

7/5/16

Equalization
Federal
Issue regards Administrative
government
and Executive Capacity
Lack of Technical Knowledge
and Technical Overheads
Treatment of Natural
Stage
2
Provence
Resources and issue of
Sustainability
Lack of Facilitating
Infrastructure
Intergovernmental Fund
Transfer Mechanism
Other Problems with Fiscal
Local government
Federalism

Stage
1

Stage
3

25

Other problem

7/5/16

Unequal distribution of means and resources between

the provinces may cause unequal development and
misunderstanding among the provinces.
There may be conflict between the provinces regarding
the use of natural resources of border areas.
Federal system of government is more expensive so
that there may be lack of sufficient budget for its
successful operation.
There may be misunderstanding between federal
government and provincial government regarding the
sharing of power and authorities.
The provinces may demand for a different and a
separate state which can threaten the national integrity
and indivisibility of the nation
Absence of Intergovernmental Transfers mechanism
module

26

How to solve those problem ?

1. Income and Expenditures Equalization
Expenditures

Income

Mandates

Taxes

Loan
Transfer

State

Budget

Funds

Legislation

Services

Investments
Grants
Debts

HOW TO SOLVE THOSE PROBLEM ?

2. FINANCIAL EQUALIZATION

Equalization

Deficiencies

of resources

of the capital flow system

Resource indicator (different province have
different resource indicator)
Minimal funds for all Provinces
Financed by the federation and the financially
strong Provinces

Cost

Compensation

Geographic

and topographic cost compensation

Socio-demographic cost compensation
Financed by the Confederation

28

CONCEPT OF FINANCIAL EQUALIZATION

Inter-cantonal cooperation with
cost compensation

Spillovers
Additional goods and
services

no compensation
excessive
cost

basic goods and

services

cost compensation
threshold value
resource equalization

public goods and

services

Unconditional grants: Given to enable adequate level of services at

reasonable tax rates based on capacities and needs. Most countries
do not have such equalization grants. However, Nepal need to apply
this ideology .
29

CHAPTER-VII
CONCLUDING MY RESEARCH LANDSCHAPS WITH A NEW VISTA

Research Conclusion

There is incontestable gap between the economic capacity between

proposed seven-province model (i.e. province three revenue allocation
capacity is 300% more than province six and seven). By implication this
finding suggests that the principles and practice of fiscal federalism in
Nepal should have necessarily been guided by the theory of fiscal
federalism, and the theory of equal development. Clarity and Consensus
for responsibilities)
Securing a common economic union through unimpeded goods and factor
mobility and national minimum standards for social services and
infrastructure is the best guarantee for political and economic stability
and regional convergence in the long run.
Properly designed intergovernmental transfers can strengthen results
based accountability and also inter-provinces competition for the supply of
public goods, fiscal harmonization, state and local government
accountability, and regional equity.
Institutional arrangements for managing intergovernmental conflicts
play an important role in the smooth working of a federal system.

Cont....

7/5/16

Increased fiscal decentralization should limit the size of the public

sector.
Ensuring time consistency is an important part of the institutional
framework which ensures the credibility of a fiscal federalist system.

fiscal federalism, that it improves efficiency in the use of

resources,should also apply in a dynamic economic growth framework.
fiscal federalism provide incentives for local politicians to consider
local preferences and to spend time searching for innovations in the
production and supply of public goods and services which could result
in their costs and prices being lower.
Fiscal federalism loosens the grip of vested interests on public policy,
which promotes democracy and (longer term) economic growth.# 31
For fiscal federalism to work the appropriate institutional framework

MAJOR FINDING

7/5/16

There is limited degree of fiscal decentralization in Nepal as fiscal

responsibility and taxing powers remain considerably centralized over the study
period. For this, it is necessity to build strong taxation or revenue allocation
mechanism which foster holistic prosperity and substantive development.
A global experience shows that, fiscal federalization has a significant positive
impact on economic growth and national prosperity. By implication, this finding
suggests that this could occur when tax and revenue instruments that are best
used by the central government are assigned to subnational governments,
thereby reducing the efficiency of such instruments.

Our findings have shown that while there are in fact serious disagreements on
the subject, they are solvable if only there is adequate political will to do so. This
means that the largest problem lies in the ideological differences and
understanding of democratic structures and the parties struggles for power.
What seems to be motivating the politicians to delay federalism is that they fear
they might lose their power and privilege and it has become evident that for
their motivations to change something radical must happen.
32

Ensuring a common market is at the heart of creating dynamism in fiscal

federalism. Removal of impediments to mobility in factors and products and
impediments to internal trade; Efficient factor (land, labour and capital) and

Contd.....

7/5/16

Strong political willingness and integrity is needed

Weak fiscal discipline and less transparency prevailing in the
states have hampered local resource mobilization, causing high
irregularities, hence well and at least common national fiscal
discipline should be sustained.
Revenue sharing mechanism should be well defined among the
different tires of governments so that the predictability of resource
allocation and maximum utilization of resources could be achieved.
Grant system has promoted the participatory planning process
and encouraged local government bodies to perform works more
effectively and transparently.

For the issue of equal development and substantive welfare,

it is necessary to strengthen and enhance financial efficiency,
resource planning, computerized accounting, financial
reporting, and auditing mechanism including social audits in
local bodies. For this, Gender mainstreaming, budgeting, and
33
auditing mechanism should be instituted at all levels of
governance structure.

RECOMMENDATION

Need for Highest Level Political and Administrative Unity & Support
Minimize vertical and horizontal gap is strongly recommended.
Focus on What Unites Us All, Not What Divides Us
Capacity Development
Need for Clear Expenditure and Revenues Assignments (Framework
building)
Need for Transparent and Equitable Intergovernmental Transfer
System
Institutional Reform Recommendations (i.e. a National Federalism
Financial Taskforce Regulation Committee (NFFTRC hereafter)
Constitutional reform (somewhere)
The need to reduce the necessity for frequent intergovernmental
transfers that causes disruption in the fiscal system is strongly
recommended.
The need to diversify and strengthen the fiscal base of subnational
governments is recommended. To this end, local tax administration
should be improved, unproductive local taxes eliminated, and untapped
tax potentials identified.

CONT...
Progressive and redistributive taxes should be centralized, such as
personal income tax and corporate income tax;
taxes suitable for economic stabilization, such as import duties,
should also be centralized;
taxes on mobile factors of production such as gains taxes should be
centralized;
residence-based taxes, such as sales/excise and retail taxes are
best suited for Provinces;
benefit taxes/user charges are usually assigned to the LGs that
provides the services such as toll gate levies, hospital and
education fees, and motor licences;
taxes on immobile factors of production, such as land and
buildings (property taxes) are assigned to local governments; and
taxes on natural resources should be assigned to the central
government, for the sake of administrative efficiency and uniform
35
practice since the major projects in this field often involve big
transnational corporations.

7/5/16

RECOMMENDATION MODULES
The Production Function Approach (Roy, 2005)
i.e. InY=lnA+alnN +(l-a)lnK+lnE..........................................................(2.3)
Or,
y=a+an+(1-a)k+e ......................................................................(2.4)
where Y is output, N is labour, K is capital, E is total factor productivity and a is the intensity of labour
vis-a.-vis capital. In order to implement the PF approach it is necessary to have accurate measures (or
estimates) of all factors of production
2. A legislative Bargaining Model of Fiscal Federalism (purposed by (Bahl and Martinez-Vasquez,
2006; Hindrisk and Lockwood, 2009).
3. Fiscal Federalism and Economic Growth Model
Y = f (L, KP , KG ) ..........................................................................(3.1)
Where, the subscripts denote sectoral inputs:
KP = Private capital per labor
KG = Public capital per labor
The production functions of the respective sectors are thus:
YP = P(LP, KP, G).....................................................................................(3.2)
YG = G(LG, KG )
Total inputs are given as:
LT = LP + LG ..............................................................................................(3.4)
KT = KP + KG .............................................................................................(3.5)
Total output Y is given as the sum of sectoral output or a function of sectoral inputs:
Y = YP + YG ..................................................................................................(3.6)
The model further assumes that the public sector comprises of three subsectors and, by extension, that
public spending is carried out by three levels of government: federal (f), Provence (s), and local (m). Thus:
36
Y = a0 +LT + KT + GT + ...........................................................................(3.7)

7/5/16

CONT....

Implications and Implementations

For Social Researcher

For Reader

Socio-political
Educational

The Holiness of my work is envisioning contextsensitive ideology

towards fiscal federalism amendments in Nepal . Thus, this study
forwarded policy maker to do at least following three major
commitments:
The promotion of national welfare based fiscal policy through
37
the effective model of fiscal federalism;
The fostering of context sensitive framework...; and
connecting actual macroeconomic status of nation and linked

7/5/16

For Policy Makers,

Educators

Academic

REFERENCES
Al-Hadi Abdal Samad, Intergovernmental Relationships in the Sudan Federal System: Cooperation, Conflict or Covariance? in Salih, Hassan M. et.al., (eds.), Federalism in the
Sudan, Khartoum University press, 1995.
Bhurtel , Bhim Prasad, The Political Economy of Federalism in Nepal, Nepal South Asia
Centre (Kathmandu, 2009).
Bird, R. M and Ebel, R.D. (2001), Fiscal Federalism and National Unity, available at
http://www.urban.org/uploadedPDF/1000803.pdf
Eisner, E. W. (2008). Art and knowledge. In J. G. Knowles & A. L. Cole (Eds.), Handbook of
the arts in qualitative research: Perspectives, methodologies, examples, and issue (pp.3-12).
Thousand Oaks, CA: Sage.
Hatlebak M. and Ringdal, C. (2013). The economic and social basis for state-restructuring in
Nepal. CMI report.
Oates, W. E. (2006), On the Theory and Practice of Fiscal Decentralization. In: The Tiebout
Model at Fifty, ed. William A. Fischel. Cambridge, M. A: Lincoln Institute of Land Policy,
1-32.

38

THANK YOU

39
7/5/16