Executive Summary

The Provincial and Local Governance Support Programme (PLGSP) is the national flagship Programme of the Government of Nepal (GoN) to build institutional, organizational and individual capacity at all levels of government, with special focus on the provincial and local levels. The ultimate goal of the Programme is to attain functional, sustainable, inclusive and accountable provincial and local governance. The Programme aims to contribute in delivery of quality services at provincial and local levels, promote local development and enhance economic prosperity. This report covers the progress for the period of 16 July 2022 to 15 July 2023.

Progress in the reporting period has improved compared to previous two fiscal years. The noteworthy progress includes start of IPF implementation, GESI/audits completed and endorsed GESI strategies in LGs, training of LGs officials and elected representatives in various thematic areas, the roll out of FRA and orientation of LGs on MTEF and the preparation of PIS system for PG. Progress against each of the planned activities is described in the text.

The reporting period also marks some major learning, including the creation of PLGs’ websites with regular updates which have raised citizens’ awareness regarding budgets, expenditure, programme and priorities. Quality assurance mechanisms at province and federal level has been a vital initiative while pursuing the consulting service to deliver programme outputs. Furthermore, focused/targeted interventions through GESI audit, Gender Responsive Budgeting, and GESI strategy have served to mainstream and institutionalize GESI in the plan and policy of the provincial and local governments.

The programme has continued to face some issues and challenges including low ownership of the programme at the provincial and local level, low financial delivery (though this has increased in the reporting period compared to the previous two years), legislating for PCGGs and re-structuring the existing LDTA and strengthening the relationship among the three levels of government.

The financial performance of the programme improved significantly compared to previous years. The total budget of the Annual Work Plan (AWP) for 2022/23 of NPR 3271.516m including NPR 2881.536m JFA, 26.55m GoN, and 363.430m TA. Against the total budget, NPR 1978.631 million (60.48%) was utilized as of the end of F.Y. 2022/23. Similarly, under the TA, 91.98 % of the total planned budget (NPR 334.280 million) was expended during the reporting period.

Key priorities for the next financial year include institutionalizing various systems, policies, strategies, guidelines and tools delivered by the programme so far; implementing IPF in full compliance to the operational guidelines; capacity development of individual PLGs’ officials and elected representatives with a focus on newly-elected representatives; implementing MTR recommendation, monitoring and quality assurance and increasing the programme’s financial delivery.

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