Lumbini Province has become the first province in Nepal to publish its Provincial Fiduciary Risk Assessment (PFRA) online, covering all 10 of its ministries. The PFRA is a tool to assess the fiduciary risks and capacities of the provincial governments, and to identify areas for improvement and support.
The PFRA consists of 50 indicators, divided into five subject areas: Planning, Budgeting & Program Management, Implementation Capacity & Management, Financial Management & Reporting, Monitoring, Evaluation and Financial Audit and Revenue Management. Each indicator is further classified into three levels: Process Level, Result Level and Financial Discipline Level.
The PFRA results show that Lumbini Province has an average score of 32(64%) out of 50, with the Ministry of Health scoring the highest with 37 points. The Revenue Management subject area has the highest score among the five areas, indicating that Lumbini Province has a strong system for collecting and managing its own revenues. However, the Monitoring, Evaluation and Financial Audit and Planning, Budgeting and Program Management subject areas have scores below the average, suggesting that Lumbini Province needs to strengthen its mechanisms for monitoring and evaluating its programs, as well as for planning and budgeting in a participatory and transparent manner.
The online publication of the PFRA is a commendable step by Lumbini Province to enhance its accountability and transparency, as well as to facilitate learning and sharing among the provinces. The PFRA also provides a baseline for measuring the progress and impact of the federalism reforms in Nepal, and for informing the allocation of resources and technical assistance from the provincial government and development partners.