No Local Government Achieves Full Score in Performance Evaluation, Finds National Natural Resources and Fiscal Commission

Despite several attempts, no local government in Nepal has been able to achieve full marks on all indicators set for performance evaluation by the National Natural Resources and Fiscal Commission. The Commission’s latest report, released Thursday, highlights the persistent gap in local governance, noting that none of the local bodies, even after two election terms since the first local elections in 2074, have been able to fully comply with the established benchmarks.

Failure to Meet All 17 Indicators

According to the Commission’s assessment, not a single municipality or rural municipality has been able to meet the 17 criteria set for performance evaluation. These criteria include the operation of local council meetings, the presentation of budget estimates, revenue management, and educational indicators like student enrollment rates. Despite the passage of several terms of office, local governments have struggled to meet the necessary standards.

The indicators used for evaluation this year include critical aspects of governance such as whether the local government conducted its council meetings, whether it presented its revenue and expenditure projections, whether it passed the budget by the end of Ashar, and whether it deposited the required 40% of revenue collected from land registration, entertainment, and advertisement taxes into the provincial treasury.

Key Areas of Evaluation and Poor Results

The Commission's acting chairman, Yudhabahadur Gurung, pointed out that certain local governments even scored zero in some indicators. These include municipalities that failed to conduct council meetings, which is a fundamental criterion for assessing governance performance. Local governments that failed to submit or present their budgets as required, or failed to complete other essential tasks, were penalized with zero marks for those indicators.

Each indicator carries a specific weight, meaning local governments were awarded a fixed number of points depending on their performance. For instance, municipalities that conducted their meetings and presented their budget were awarded five points, while those that failed to do so received zero points.

Financial and Administrative Discrepancies

The report also included indicators relating to the handling of financial resources. Specifically, it examined whether local governments had submitted their budget projections to the Ministry of Finance by the designated deadlines and whether they had published budget reviews by the end of Kartik. Additionally, the progress of budget expenditures, the status of unresolved financial discrepancies (beruju), and the use of software for administrative processes were also part of the evaluation criteria.

Furthermore, the Commission assessed how well local governments were managing social services, including the proportion of women who received antenatal care and the coverage of childhood vaccinations. These factors are integral to the evaluation, as they reflect the efficiency of public health services at the local level.

Ongoing Challenges in Local Governance

Despite efforts from local governments to meet the expectations, the findings underscore a critical issue: the failure to implement consistent and effective governance practices. The inability to meet basic standards like council operations, budget presentation, and financial reporting suggests systemic issues in local governance structures.

Gurung also pointed out that some municipalities had failed to meet even the most basic requirements, and the lack of inter-departmental coordination or support from the central government further exacerbates the problem. As a result, these local governments are unable to show measurable improvements in critical sectors like education, health, and fiscal management.

Next Steps and Calls for Improvement

Looking forward, the Commission has urged local governments to prioritize the implementation of feasible plans and ensure that all necessary documents are submitted on time. It also called for increased coordination between local, provincial, and central governments to enhance efficiency in the administration.

Furthermore, the report stresses the importance of timely budget submission, effective utilization of public funds, and transparency in financial management, as these elements are essential to improving local governance. The Ministry of Finance is expected to continue monitoring progress closely to ensure that necessary reforms are implemented.

The findings of the Commission’s second-quarter review paint a concerning picture for local governance in Nepal. While some local bodies have made strides in certain areas, there remains a significant gap in their overall performance. The inability to meet full marks on the established indicators reflects the broader challenges faced by local governments in managing resources effectively and delivering essential public services. As the fiscal year progresses, it is clear that more needs to be done to improve local governance systems, with a particular focus on financial transparency, service delivery, and administrative efficiency.