According to bank documents, the project "supports reforms under two pillars. Pillar 1 supportsa framework to establish fiscal federalism through an umbrella legislation to be enacted at the federal level that willguide budget execution and ensure fiscal discipline and accountability for all three levels of government. Pillar 2 supports reforms to strengthen the policy framework for public financial management at the subnational levels. This is to be achieved through legislation and regulations that governthe budget cycle and promotestransparency and accountability to citizens, guides implementation of the MTEF and strengthens expenditure control, and the development of a revenue management information system. The pillar also supports reforms to establish a disaster management system to help mitigate the fiscal costs of disasters."
Kenechukwu Maria Ezemenari, Franck BessetteSenior Economist
Government of Nepal
Ministry of Finance
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