NEPAL
Kishore K Jha
MfDR Expert
The introduction of MfDR approach in Country Assistance Program of ADB in 2004 and
selection of Nepal in ADB’s regional level MfDR studies in 2006 were beginning of the
implementation of the results based public sector management initiatives in Nepal. The MfDR
approaches were initially piloted in the selected GoN agencies; namely National Planning
Commission Secretariat, Ministry of Education (MoE), Ministry of Physical Planning and Works
(MoPPW) and the Ministry of Local Development (MoLD). Four local government units i.e.
District Development Committees of Jhapa. Dhanusha, Dang and Jumla under MoLD were also
included for piloting. Subsequently, MfDR was operationalized in additional two ministries;
namely Ministry of Energy and Ministry of Agriculture during 2009-11 through another ADB
assistance technical support1. This TA also intended to deepen the MfDR process in the three
previously piloted ministries; namely MoE, MoPPW, MoLD by cascading it down to the
department and divisional level. Moreover, preparations for the Results Based Budgeting (RBB)
were initiated in the two government units; namely Department of Transport Management and
the Metropolitan Traffic Police Division in close coordination with the Ministry of Finance. All
these efforts have led to preparation of three-year rolling business plan for thirteen government
ministries and/or organizations (refer www.npc.gov.np/MfDR).
Though MfDR is yet to be fully operationalized in the GoN system, some of the
milestone achievements include development of outcome level results matrices for all sectors in
the successive national periodic plans and recent efforts to link annual organizational outputs to
the sector outcomes through three-year rolling business plans. These business plans are also
expected to enhance the linkage between the planning and budgeting using Mid Term
Expenditure Framework (MTEF) as well as to establish an improvised system monitoring and
evaluation using Results Based M&E Guideline (2067 BS) of the NPC. The commitment of GoN
to gradually institutionalize MfDR is further reflected by inclusion of additional four ministries
namely Ministry of Health, Ministry of Irrigation, Ministry of Forest and Ministry of Peace and
Reconstruction in this fiscal year, and giving continuity to the use of business plan for annual
budget discussions between the concerned units and the NPC/MoF. Some of the challenges for
more effective implementation of MfDR in Nepal are rationalization of outcome indicators and to
establish its linkage to relevant output indicators using MIS, creation of dynamic data base
through regular RBM&E and enhanced system of results based annual budget allocation and
monitoring.
1
ADB TA 7158-NEP: Strengthening Capacity for Managing for Development Results