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The Constitution of Nepal, 2015 has given the National Natural Resources and Fiscal Commission (NNRFC) the authority to recommend the basis for determining the share of investment and returns for the federal, provincial and local governments while mobilizing natural resources.

Similarly, the NNRFC is also tasked with the responsibility for studying potential disputes regarding distribution of natural resources between three tiers of government, and providing suggestions for their resolution. The essence of federalism is the practice of autonomous governments. The constitution envisaged the NNRFC to play a coordinating role in potential disputes, tensions or claims over natural resources and finances between the three governments.

Likewise, Part 4 of the Constitution outlines policies regarding the conservation, promotion and utilization of natural resources under the Directive Principles, Policies and Obligations of the State. It states that the state will adopt policies to conserve, promote and sustainably use available natural resources in the national interest and in line with intergenerational equity, while prioritizing local communities and ensuring equitable distribution of benefits. Here, we will discuss how effective the NNRFC has been in fulfilling these obligations.

Now work for 72 employees

When this scribe reached the office of the NNRFC near the close of the previous fiscal year, employees appeared to have little to do. While other government offices were extremely busy, employees of the commission just signed the attendance register and remained idle throughout the day. Government employees are required to give eight hours to the office. “We don’t have even one hour of work here,” one staff member of the NNRFC told this scribe. “In reality, the NNRFC has no work.”

On condition of anonymity, the staff said the NNRFC has failed to work according to its establishment and objectives. According to Article 250 (1) of the Constitution, the NNRFC should consist of a chairperson and four other members appointed by the President on the recommendation of the Constitutional Council. The tenure of the Chairperson and members is six years from the date of appointment. Nearly six years have passed since the first appointment, but the committee members have not been able to accomplish much.

The NNRFC currently has only four office-bearers. Even they lack unity among themselves. “The NNRFC has not been able to provide any output. The taxpayers’ money is not being utilized properly,” the staff added.

In India and other countries, such commissions are formed for a limited time and are closed after completing specific tasks. “The objective of the NNRFC is not clear; there is no end to the work. Employees don’t even have an hour’s worth of work. We are just passing time,” employees told this scribe. “This is supposed to be a research-based office. The constitution envisioned it with great ambition and goals. But in reality, it has become a stagnant office.”

The federal, provincial, and local governments need to effectively mobilize financial and natural resources to provide services to the people while promoting cooperation, coexistence and coordination among themselves. The NNRFC is required to play a crucial role in ensuring balanced and equitable distribution of financial transfers and natural resources among the three levels of government. Primarily, it has the authority to make recommendations regarding revenue sharing, financial equalization grants, conditional grants, internal loans and distribution of natural resources among federal, provincial, and local governments. "But in reality, it hasn't accomplished anything," the employee says.

Problems galore

NNRFC Chairperson Dr Balananda Poudel acknowledges that the distribution of natural resources as per the constitutional mandate has not been smooth. He claims that over five years, they have conducted studies, made recommendations, conducted research, provided suggestions and facilitated various tasks. “We were supposed to recommend a framework for investment and returns from natural resources. The study for this hasn’t been completed. The NNRFC has realized the need to pay more attention to this work,” he added. He also pointed to political instability and interference in the bureaucracy as root causes of the problems. “Secretaries are transferred every month. There is no coordination when sending staff to the NNRFC. Interest, patience and expertise are not considered while sending staff. The state doesn’t consider what kind of knowledge, skills, and qualifications are needed for the NNRFC,” he said. Although Paudel claimed that the NNRFC has been working to its capacity, he has no  visible achievements to show. “I feel we could have done more than what we have accomplished,” he said, adding that the NNRFC has provided suggestions to the government about its problems in their annual report.

Slow collection of royalties

The modality for sharing royalties from natural resources has been determined. However, other laws play a more important role than the NNRFC in this. According to Section 7 of the Intergovernmental Fiscal Management Act, 2017, 50 percent of the royalties from mountaineering, electricity, forests, mines and minerals, water, and other natural resources should go to the federal government, and 25 percent each to the related provincial and local governments. The annual report of the Financial Comptroller General Office, 2021/22, states that a total of Rs 5.72bn was collected as royalties from  mountaineering, electricity, forests and mines and minerals and distributed among three tiers of governments. Of this, electricity contributed the highest at 53.4 percent, followed by forests at 22.9 percent, mines and minerals at 14.4 percent, and mountaineering at 9.3 percent.

Office-bearers not in friendly terms

Dissatisfaction and discord can be felt among office-bearers which has affected the NNRFC’s work. Amar Raj Mishra, a member of the NNRFC, expressed dissatisfaction with the chairperson’s work. “The NNRFC is being run by one person’s decisions,” he said. Mishra has even filed a writ petition in court against the chairperson’s conduct. “I have been saying that the NNRFC should not work in a haphazard manner. Now, I have become like an opposition. There is no consensus even on issues that need to be improved through discussion,” he added. Mishra said he moved the court to improve affairs at the NNRFC, but things have not improved. “The NNFRC’s work has been limited to formality. There is no proper procedure. Wrong data is being used. There is no profile for any project,” he added.

The NNRFC is supposed to recommend the equitable distribution of government-collected revenue among federal, provincial and local levels, and determine the amount of fiscal transfers to provinces and local levels. However, Mishra accuses the NNFRC of using inaccurate data for grant allocation and distribution of tax and royalty revenue. He claimed that local governments are being unfairly treated due to the use of old data by the NNRFC. Mishra has filed petitions against the NNRFC’s decision to recommend grant distributions without conducting any discussions within the commission. The NNRFC Regulations, 2019, stipulates that the distribution and division of work among the chairperson and members should be determined in commission meetings. Mishra, however, claimed that many decisions have been made arbitrarily.

Incomplete commission

The NNRFC is supposed to have five members including the Chairperson. For about two years, only the chairperson ran the NNRFC single-handedly. Later, three members were added. Currently, there are only four members. The position of a female member is still vacant. The other two members are Juddha Bahadur Gurung and Bipin Raj Niraula.

Gurung claimed that work is progressing in a satisfactory manner. “We have been handling responsibilities related to natural resources including royalty distribution,” he said. “Studies and research are being conducted. Sufficient work has been done since the NNRFC’s formation,” he said. “The seed has been planted and is sprouting. Studies are being conducted to define natural resources. Results will be seen gradually.” However, a staff member told this scribe that the software created to make the NNRFC’s work transparent and smooth has been sitting idle for two years.

Weak federalism

Federalism expert Khimlal Devkota believes that federalism itself has become weak due to the ineffectiveness of the NNRFC which is considered the main link in implementing federalism. “The federal government has become dominant. It either hasn’t given grants to provinces and local levels or has reduced them,” he said. “The NNRFC should put a strong pressure on the government in this matter, but it hasn’t been able to do so.” Devkota said there is no need for such an extensive structure if it is to only make general recommendations occasionally. “The NNRFC has failed to work according to the expectations of the parliamentary committee. The parliamentary committee is not satisfied with the NNRFC’s work,” he said, adding: “There is no point in continuing the NNRFC if it cannot come up with a substantial report.” Forest expert Naya Sharma Poudel also said that the NNRFC has not been able to work as expected. “Not much seems to have been done in the field of natural resources. Political parties and officials need to pay attention to this,” he said

Natural resources still overlooked

The NNRFC hasn’t been able to do anything concrete on the management of royalties for many natural resources. The NNRFC has said in its fifth annual report that there are some potential sources from which royalties can be obtained in the future from the mobilization of water and other natural resources. These categories include inter-basin drinking water, inter-basin irrigation, bottled water use, industrial use of water, groundwater resources, water transportation, water recreation, fish farming and hydrogen energy. Similarly, potential sources of royalties from the mobilization of other natural resources in the future include solar energy, wind energy, geothermal energy, thermal energy, fossil energy, nuclear energy, petrol, coal and telecommunications (frequency). But it has failed to suggest necessary legislation for the same. As per Article 251 (2) of the constitution, the NNRFC should conduct necessary studies and research on environmental impact assessment related to the distribution of natural resources and make recommendations to the government. However, the commission is lagging in this aspect as well.

More focused on fiscal part

Although the NNRFC is required to work on natural resources as well, it seems more focused on the finance aspect. Its work and activities are also finance-centered. It has no role in the protection and promotion of natural resources. The NNRFC’s focus is only their consumption. “Nepal is rich in natural resources. We are poor because we haven’t been able to protect and properly utilize them,” a staff of the NNRFC said. “The constitution created this commission to address this issue. But the focus is on how to consume natural resources and share royalties generated for them.”

This story has been produced with the support of the Internews Earth Journalism Network through the Media for Inclusive Green Growth project

Images of a woman in a wheelchair entering the legislature anywhere in the world send a powerful message to the public. Lakshmi Ghimire, a lawmaker in the 110-strong Bagmati Province Assembly, symbolizes it all. The 28-year-old is the first lawmaker in the legislative assembly to represent people with disabilities. Although the Constitution guarantees equal rights for women, indigenous nationalities, people with disabilities and other marginalized groups, the provision remains on paper for many. Ghimire is the first person to get elected to the assembly on a disability quota. The young parliamentarian hails from Sanga in Kavrepalanchowk district. She joined the Sajha Party in 2017. Recognizing her contributions, the party sent her to the Bagmati Province Assembly under the proportional representation (PR) system. The youngest among five sisters and a brother, Ghimire was paralyzed from the waist down after falling off a cliff when she was just 16. "I had just joined Grade 11 after completing my SLC at the time of the accident. I fell off a cliff while collecting fodder during Dashain vacation," she said. A year-long stay at hospital further hindered her studies. "Given the lack of disabled-friendly infrastructure, it wasn't possible to attend school in my village," Ghimire recalled. Overcoming these challenges, she pursued her education and moved to Kathmandu, where she stayed at a rehabilitation center in Sanga (Bhaktapur). Later, she started taking computer classes, which motivated her to give continuity to her studies. She then re-enrolled in Grade 11 at Jorpati-based Chamunda Secondary School and earned a degree. Participating in the activities of different organizations working in the disability sector, Ghimire felt a “strong desire to do something for the people with disabilities”. She joined the RPP and got involved in its activities. "I worked full-time for the party. Recognizing my contributions, the party included me in the proportional representation (PR) system. I didn't get this opportunity just because of my disability." So, how was her first day in the assembly like? It was not so pleasant due to the lack of accessible infrastructure. She struggled during the swearing-in ceremony. "Though aware of my disability, the province assembly secretariat did not make necessary arrangements. I was disappointed," she said. Having reached the policymaking level, what does the young lawmaker plan to do, first and foremost. She says she is determined to make infrastructure more accessible for people with disabilities. She believes all government offices within the province and affiliated organizations should have a universal design that is friendly for everyone, including people with disabilities, senior citizens and children. Ghimire, having seen such designs in countries like India and South Korea, notes that these countries already have disability-friendly infrastructure, built with the thought that everyone should have equal rights, not only in public but also in private places, from motor vehicles to structures. “Like other people, we have paid the same amount of tax to the state,” said Ghimire. “Therefore, people with disabilities should get the same service and facilities as them, and should be able to live comfortably.” She believes that the state should create an environment where people with disabilities can live like others. There’s a need to raise awareness and put pressure on other provinces to follow suit, she says. “The state should also work to create a more inclusive and accessible society for people with disabilities. That way, they can enjoy the same rights and opportunities as others.” Her prescription: provide concessional loans to people with disabilities to help them start their own businesses. Ghimire hopes to become the voice of disabled people across the country by reaching the federal parliament in the next term. "I am not in an executive position now, but I will definitely do some exemplary work if I get to that position." Ghimire mentions that even though she faced small problems due to her disability, she did not experience any major discrimination. "Maybe because I had the support of my family, I didn't have to suffer discrimination." Remembering the difficult time when she had to stay in the hospital for a year after her accident, Ghimire said she had almost given up on her life as an invalid. "But everybody is proud of me now. They say I have been able to do good for society despite my condition. This gives me a lot of encouragement," she said. Ghimire used to believe that good education should be the top priority for people with disabilities, but she has come to believe now that building accessible infrastructure should be the first priority. Nepal lacks accurate data on the number of people with disabilities, though estimates suggest there are 800,000 to 1 million people with disabilities in the country, about 200,000 of them with spinal cord injuries like Ghimire.

Apple production in Mustang has been dwindling massively in recent years. Local farmers blame the unpredictable weather for it.  Dipak Hirachan has been in the apple farming business for the last 20 years, and he says the fruit production has dropped massively over this period. “There is a massive difference both in terms of the apple’s quantity and quality.” Hirachan owns apple orchards in Tukuche village. It is an area where rainfall rarely occurred until a couple of years ago. Mustang’s dry weather is one reason why apples from there, though tiny in size, are sweet and why people love them. But the region has been receiving excessive amounts of rain in recent years. As a result, apple farmers are facing problems of pest infestation and plant root decomposition due to excessive moisture in soil. It is extremely difficult to grow apples in lower Mustang these days. “There is a serious pest problem here, but we have no way to combat them. This is a direct result of climate change in these mountain areas,” says Bikal Sherchan, an apple farmer in Kuwang village. Experts say the overall crop output of Mustang has been hit due to changing climate. Achyut Tiwari of Central Department of Botany, Tribhuvan University, says a study conducted in Mustang shows that apple production in Mustang has dropped sharply as a result of excessive rainfall. “Many farmers in the so-called apple region of the district such as Lete, Taklung, Dhampu, and Kowang are moving towards different crops.” Tiwari adds some places in the upper region of Mustang, where apple production was hard until a couple of years back, meanwhile, are seeing improved production. “This is because these areas haven’t been receiving as much snowfall as they used to. Apples and other crops that prefer dry climates are moving further up because of changing weather patterns.” Prakash Bastakoti, chief of Agriculture Knowledge Center, Mustang, says the effects of climate change can be observed particularly in lower altitude regions of the district, but there hasn’t been many conclusive and comprehensive studies. “The use of pesticide has also increased significantly because the apple farmers have been witnessing various crop diseases.”   There are around 3,700 households in Mustang and nearly 1,500 of them are involved in apple farming. Of late, some of these households have been migrating to upper Mustang, where they can grow apples without fears of rainfall or pests. Subas Adhikari, an environment expert, bemoans the fact that the government doesn’t have strong data to measure the effects of climate change and to prepare a robust action plan.  “There have been a few studies but they are not enough. Climate change research should be a matter of priority for all three tiers of government.”

Although just 18 women were elected to the top posts of 753 local bodies in the 2017 local elections, most of the deputy seats in metropolitan cities, sub-metropolitan cities, municipalities, rural municipalities, and their wards went to women. 

Only 11 women were elected chairpersons while 424 were elected vice-chairpersons of rural municipalities. Likewise, seven were elected mayors and 273 deputy mayors. 

So will the political parties field women for the top seats this time around? It is highly doubtful.  

Hari Prabha Khadgi, deputy mayor of Kathmandu Metropolitan City, says she doubts her party, Nepali Congress, will back her claim for mayor. 

“I will be happy to withdraw my claim for the mayoral seat for a more capable and competent woman candidate. Or else, I do continue to consider myself the main contender,” she says. 

Khadgi believes that women are good enough to lead local governments. 

Geeta Satyal, deputy mayor of Lalitpur Metropolitan City, also says all incumbent women deputies are fit to be mayors and chairpersons. Like Khadgi, she too is seeking her party’s assent for her mayoral run. 

Manju Gurung, deputy mayor of Pokhara Metropolitan City, has no interest in contesting upcoming elections, let alone vying for mayor. She says her five-year-term has come to an end and others should get the opportunity. 

“But I strongly support strong and able women candidates in both head and deputy positions of local bodies,” she says.   

Padma Kumari Aryal, a woman politician and former minister from CPN-UML, says while women are capable enough, they don’t have the financial means to lead successful election campaigns. 

“Party leadership should not hesitate to field and financially support women candidates,” she says. 

Shanti Limbu Bhujel, vice-chairperson of Morang Kerabari Rural Municipality, echoes Aryal’s sentiment. 

“I want to be the chairperson this time, but then it isn’t easy for a woman candidate to arrange the requisite finances,” she says. 

Ila Sharma, former election commissioner, sees electoral alliance among political parties as another factor that could not just sideline women candidates from top local-level posts, but also erode their overall representation in upcoming elections. (A political party must field chief and deputy candidates of different genders, but an alliance of parties need not.) 

Sharma believes prioritizing women candidates alone is not enough. “There should be a rule guaranteeing women’s representation in top posts,” she says. 

Sitadevi Yadav, former treasurer of Nepali Congress, is for starting a system of proportional representation of men and women in leadership positions of local bodies. 

Nonetheless, women rights advocates see little hope of gender disparity narrowing anytime soon with patriarchal mindset still a dominant force in Nepal. 

“We still think only men are capable of becoming leaders. This attitude must change,” says Kamala Parajuli, chairperson of National Women Commission.