(1)The functions, duties and powers of the National Natural Resources and Fiscal Commission shall be as follows:
- (a)
Determine extensive grounds and measures, regarding the distribution of revenue from the federal consolidated fund to the federal, provincial and local level governments according to the constitution and law,
- (b)
Making recommendations, according to law, on distribution of the equalization grants to provincial and local governments from the federal consolidated fund,
- (c)
Conducting research and studies with regard to making a basis for distribution of conditional grants to provincial and local governments in compliance with national policy and program and standards, and the state of infrastructure there.
- (d)
Determine extensive grounds and measures regarding the distribution of revenue between provincial and local governments from the provincial consolidated fund.
- (e)
Making recommendations regarding the measures of reforms on responsibilities of expenditures and revenue generation for the federal, provincial and local governments.
- (f)
Making recommendations about the internal loans the federal, provincial and local governments may take, by analyzing the macroeconomic indices.
- (g)
Reviewing the bases of revenue distribution between the federal and provincial governments, and making recommendations for reform.
- (h)
Determine base for computing the share of investment and return for federal, provincial and local government while exploiting natural resources, and make necessary recommendations.
- (i)
Making recommendations about coordination and mitigation of disputes likely to arise regarding distribution of natural resources between the federation and province, between the provinces, between a province and local level entity, or between local level entities.
(2)The National Natural Resources and Fiscal Commission shall make recommendations to the Nepal Government, by conducting necessary research into, with regards to environmental impact assessment linked to distribution of natural resources.
(3)Other matters including the functions, duties and powers of the National Natural Resources and Fiscal Commission, extensive basis for revenue distribution and natural resources exploitation, shall be as provided for by Federal law.