News Digest: Federal Affairs (August 04 -11, 2021)


Provincial Politics

Lumbini Chief Minister Shankar Pokhrel has fallen into the minority after ruling Nepal Communist Party’s lawmaker Bimala Khatri Oli withdrew his support from the government. Lawmaker Oli had been abducted in Chief Minister (CM) Pokharel’s house premises, she said in a press conference. Moreover, as per opposition parties’ demand, Provincial Chief Amik Sherchan has called a special session in the provincial assembly for August 11. But, CM Pokharel resigned from his post before the special session.    

Lumbini Physical Infrastructure Development minister Santosh Kumar Pandey resigned from his post on August 10. Minister Pandey resigned after Janata Samajwadi Party (JSP) determined to recall its ministers from the government. Similarly, two more ministers from JSP Minister for Land Management, Agriculture and Cooperatives Vijay Bahadur Yadav and Minister for Industry, Tourism, Forest and Environment Kalpana Pandey Lamsal are about to resign.  

Implementation of Federalism

On August 8, the ruling alliance’s task force prepared a report entitled the ‘common minimum program’ prioritizing COVID-19 control and vaccine program. Apart from the several prioritization issues, the implementation of federalism is one of the important. The government has emphasized forming necessary laws for the provincial and local governments and also decided to finalize ongoing bills under consideration in the parliament.  

Economic and Development 

According to Provincial Treasury Controller Office (PTOC), Lumbini Pradesh has reported that NPR 1.65 billion has seen an audit objection for the FY 2018-19. The PTOC also reported that the Ministry of Physical Infrastructure Development has the highest audit objection of NPR 1.46 billion. Now the PTOC is also going to make public an audit objection report of the FY 2019-20 and FY 2020-21.

Nepal Rastra Bank (NRB) has made public its half-yearly report related to the trade of all seven provinces with the conclusion that increasing the trade deficit is a challenge to the economic sector. Moreover, the study has also shown some possibilities to increase the trade area along with challenges. Similarly, NRB’s report also showed that the government is improving some sectors’ laws, rules and policies.

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