Prime Minister Shah Holds Consultations with Provincial Chief Ministers on Federalism and Governance

Kathmandu. Prime Minister Balendra Shah held discussions with the Chief Ministers of all seven provinces. The meeting took place at the Prime Minister's residence in Baluwatar, lasting from 2:00 PM to 5:00 PM.

Bagmati Province Chief Minister Indra Bahadur Baniya, who participated in the discussion, stated that the talks focused on the implementation of federalism, provincial rights, infrastructure development, and administrative strengthening.

According to him, the discussion addressed the fact that even after eight years of implementing federalism, provincial governments have not received full authority, and administrative complexities persist.

During the meeting, Chief Minister Baniya drew the Prime Minister's attention to issues including constitutional amendments, changes to the form of governance, implementation of exclusive provincial rights, administrative reforms, and federal government circulars regarding media. Baniya proposed a constitutional amendment to reduce the size of the provincial cabinet.

'The current constitutional provision allowing up to 20 percent of the provincial assembly to be ministers creates an impression of an oversized cabinet, which sends a negative message. I proposed that the number should be fixed through constitutional amendment,' he said. 'The number of ministers based on geography and population in Bagmati Province should be clearly defined in the constitution to create a smaller and leaner cabinet.'

He also mentioned proposing a change in the country's governance structure to allow for directly elected Chief Ministers and replacing the mixed electoral system with a direct election system.

Regarding administrative structure and expenditure cuts, Chief Minister Baniya informed the Prime Minister about the steps taken by Bagmati Province. He stated that by forming an administrative reform and restructuring committee to reduce the number of ministries, the province expects to cut annual expenses by approximately 480 million rupees.

'Bagmati Province has reduced its general expenditure from 260 million to 230 million in the current fiscal year and increased its capital expenditure capacity. The reserve fund, which was 15 billion yesterday, has reached 41 billion,' he said.

'The provincial government now wants to move forward by collaborating with the federal government on large and mega projects. We want to coordinate with the federal government to build a comprehensive tourism circuit connecting Pashupatinath, Muktinath, Lumbini, Ram Janaki, Badimalika, and Khaptad, along with quality road infrastructure,' he added.

During the discussion, Chief Minister Baniya specifically expressed his views on media and recent federal government circulars. He stated that the central government's restrictions on publishing government tenders through media outlets have affected provincial autonomy and demanded that the circular be corrected immediately.

According to him, Prime Minister Shah was positive about the matter and instructed his secretariat to rectify the circular immediately. Chief Minister Baniya stated that the Prime Minister directed the removal of obstacles regarding providing government tender notices to media outlets.

Chief Minister Baniya noted that the legal ambiguity regarding the remuneration and facilities of personal secretaries for provincial assembly members and ministers was also discussed. Insisting that federal circulars should not block facilities provided by provincial laws, Baniya stated that the Prime Minister directed the issuance of another clear circular to ensure the facilities for personal secretaries are not withheld.

Chief Minister Baniya stated that he demanded the legalization of cannabis cultivation for medicinal and industrial raw material purposes. He argued that cannabis is a plant, and regulating it for use in medicine and by-products like textiles would lead to economic prosperity. He noted that while Gandaki Province has enacted laws regarding this, there are implementation issues, and the center should clear the policy path.

According to Chief Minister Baniya, Prime Minister Shah expressed commitment to strictly enforcing the mandatory requirement for private hospitals and schools to reserve 10 percent of their seats and beds for the poor and underprivileged.