Kathmandu- Natural Resources and Fiscal Commission (NRFC) have expedited homework to prepare a modality for the distribution of royalties from natural resources.
The NRFC, a constitutional body, which has already submitted a report to government suggesting the ways for allocation of revenues and other fiscal management in the federal set up, is also collecting data about the natural resources available across the country, and their annual income. Such royalties are collected from mountain climbing, electricity generation, use of forests and forest products and extraction of minerals.
The NRFC has already dispatched a letter to local levels asking them to submit the details of natural resources available in their areas. As per the article 250 of the constitution, Commission is mandated to determine detailed basis and modality for the distribution of revenues between the federal, state and local government.
As per the law, central government gets 50 percent share, while state and local governments get 25\25 percent revenue from natural resources. Originally, it was proposed that of providing only 10 percent incomes to province and local government. After pressure from local levels, government agreed to increase the share of royalties. The estimated annual royalty is around Rs 6 billion. There are altogether 753 local levels and seven provinces.
The commission is also looking after the possible areas of conflict between center and provincial government, among the provincial government, between province and local level and among the local levels over the natural resources.
