All Provinces Perform Weakly in Performance Evaluation, None Score Above 50%

The National Natural Resources and Fiscal Commission (NNRFC) has released the performance evaluation results of Nepal’s provinces and local governments, showing that all seven provinces performed weakly, with none scoring above 50 percent. Officials said provinces can request a review of the scores by submitting evidence and supporting documents if they are dissatisfied with the evaluation.

According to the commission, this performance evaluation will serve as one of the key criteria when recommending financial equalization grants in the budget for the upcoming fiscal year 2083/84. Provinces that score higher are likely to receive more government grants.

Sudurpashchim Province topped the list, earning 45.70 points, followed by Koshi Province with 44.29 points and Bagmati Province with 42.46 points. Gandaki Province came fourth with 37.91 points, while Madhesh Province scored the lowest with 27.28 points.

The evaluation considers a total of 11 indicators. The first indicator measures arrears identified from the audit of fiscal year 2080/81. The second checks whether the province provided conditional grants to local governments as required by law.

The third indicator assesses whether provinces allocated 40 percent of the vehicle tax collected in fiscal year 2081/82 to local government monthly funds. The fourth and fifth indicators evaluate budget utilization and revenue performance, respectively, for the same year.

Additional indicators include whether provinces distributed financial equalization grants to local governments by the end of Chaitra, submitted projected income and expenditure details to the Ministry of Finance by the end of Poush, completed annual budget reviews, improved local air quality and forest coverage, and maintained online portals with timely updates.

The commission emphasized that the evaluation aims to improve governance, accountability, and financial management at both provincial and local levels. Provinces scoring lower are encouraged to strengthen administrative capacity to secure more equitable funding in the future.