KATHMANDU: Stakeholders have emphasised the need for effective public finance management for effective implementation of fiscal federalism.

Speaking at an interaction programme on ‘Public Finance Management’ organised by the Society of Economic Journalists-Nepal with support from Public Expenditure and Financial Accountability secretariat on Friday, stakeholders pointed out various challenges for effective public finance management in the new federal system of the country.

Baikuntha Aryal, secretary at the National Natural Resources and Fiscal Commission, said that institutional capacity, fiscal capacity and technical capacity are the challenges for effective public finance management. For allocation efficiency of resources, the capacity of the finance ministry alone is not adequate.

All spending agencies should have similar capacity, Aryal said in the event. Similarly, Hari Saran Pudasaini, joint secretary at the Ministry of Finance, pointed out the problem of lack of database and reporting system at the sub-national level. He also said lack of functionaries at local levels have led to the poor execution of capital budget.