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14:00
MoFAGA Hall, Singhadurbar, Kathmandu

The third National Steering Committee (NSC) Meeting of the Provincial and Local Governance Strengthening Programme (PLGSP) was held on Wednesday, December 17, 2025, chaired by Honourable Minister Rameshwor Prasad Khanal, Minister of Federal Affairs and General Administration (MoFAGA). 

The meeting was attended by representatives of local government associations, senior officials representing federal ministries and departments, Office  of Prime Minister and Council of Ministers, as well as Office of the Chief Minister and Council of Ministers of all provinces, and development partners. Members reviewed programme progress, assessed implementation of previous decisions, and set priorities for the upcoming fiscal year. 

 The Committee decisions underscored the need to accelerate completion of pending activities under the current fiscal year’s plans, strengthen intergovernmental coordination and ensure timely implementation of decisions, and take necessary actions to reduce audit arrears at provincial and local government levels. For the upcoming fiscal year, it agreed to prioritize good governance, digital service delivery, public financial management, inclusive budgeting, evidence-based policymaking, and youth engagement. Capturing the priorities discussed, Hon. Minister also highlighted the need for Gen Z-friendly programming, improving existing digital systems and interoperability. The committee advised PLGSP to work closely with local governments to design and implement plans that reflect their specific needs, ensuring effective use of funds allocated to them 

The Ambassador of Switzerland to Nepal, H.E. Dr Danielle Meuwly, spoke on behalf of the development partners including the European Union, Norway, and the Swiss Agency for Development and Cooperation, and commended the government counterparts and technical team for resilience, determination, and agility shown in the recent challenging environment. She reaffirmed the development partners' commitment to strengthening Nepal’s federal governance system.  

UNDP Resident Representative Kyoko Yokosuka emphasized that UNDP supported capacity gap assessment provides a clear basis for future planning, highlighting areas for strengthening such as digitalization and e-governance, inclusive governance and GESI, strengthened public financial management, and evidence-based policy making which if prioritized will deliver the greatest impact and build public confidence.  

Key Decisions: 

  • Decision 1: Progress Review and Implementation: Upon review of the physical and financial progress of the approved annual programme for the current fiscal year, the progress was found to be not as expected. NSC directed all concerned agencies to ensure the timely and effective completion of the remaining programmes as reflected in the Line Ministry Budget Information System (LMBIS) and the Provincial Line Ministry Budget Information System (PLMBIS). 
  • Decision 2: Inter-governmental Coordination and Relation: Activate and operationalize established mechanisms for inter-governmental relation coordination and to ensure the timely implementation of decisions. 
  • Decision 3: Future Program Formulation and Priorities: Following the receipt of budget ceilings and guidelines for the upcoming fiscal year, activities will be developed with giving special priority to the areas such as  good governance and digital service delivery; public financial management and inclusive and participatory budget/plan formulation; evidence-based policy formulation; youth concerns and Gen-Z friendly programming; updating and improving previously developed digital   information system and architecture; interoperability between information systems and improvement in  personnel information system. 
  • Decision 4: Arrears Management and Capacity Building: The meeting recommended to strengthen provincial and local-level arrears settlement mechanisms to reduce existing arrears and support the settlement process through targeted capacity development and facilitation. 
  • Decision 5: Local Government Fund Allocation: The meeting recommended the programme to coordinate with the concerned local governments to formulate and implement plans based on local government needs for the funds allocated to local governments.