Meeting Gen Z's Goals

The Gen Z movement that overthrew the powerful coalition government of the Nepali Congress and the CPN (UML) in early September not only propelled political reforms but also advocated for structural economic changes. The Gen Zers took to the streets under the anti-corruption banner. A clean government, accountability and common prosperity formed their rallying cry behind the protests. Life has become difficult for the common people because of unemployment, poverty and inflation. Most of the youths who lost their lives and sustained injuries in the protest have come from the lower economic class. Many wounded youths live in rented rooms in the cities. Obviously, economic hardships and entrenched inequality always spark social and political movements. The social media ban was a trigger to erupt the revolts that not only toppled the government but also posed an existential crisis to the major and minor political parties. 

Now the parties are talking about giving due space to the youths in the various layers of their organisations so that their concerns and demands are heard and channeled into the policy-making. As the demand for economic opportunities for the youth has gained renewed traction, various state organs have begun to revise their policy and plans to this end. Against this background, Economic Affairs Ministers of all seven provinces have expressed commitment to framing policies, programmes, and budgets by taking the demands of Gen Z into account. They made their pledge in a 25-point Hetauda Declaration issued after concluding a workshop ‘Strengthening Fiscal Federalism and Future Directions’ in Hetauda, the capital city of Bagmati Province, the other day. The programme sought to bolster fiscal federalism and ensure accountability and good governance in their offices.

Provincial governments are vital instruments of federalism that strive for the distribution of resources in a judicious manner. The federal system is based on shared and self-rule. The provincial governments have the right and power to mobilise resources and spend the budget as per the needs of the people. The autonomy that the provinces exercise provides sufficient room to formulate and implement programmes and policies independently; however, fiscal federalism is still in the making due to the absence of adequate revenues and a weak tax base. 

The decision to set up a Provincial Economic Affairs Council as a permanent mechanism comprising all seven provincial economic affairs ministers is the right move in the direction of building self-reliance economy, implementing a shared financial agenda and facilitating coordination between the federal and provincial governments. 

The gathering of provincial ministers has called for expanding the provinces’ limited revenue authority through constitutional amendment, maintaining uniformity across all provinces regarding vehicle taxes, house and land registration fees, natural resource extraction fees, and entertainment tax rates. They have also demanded an end to legal ambiguities regarding the collection and distribution of revenues from stone, gravel, sand, and natural resource extraction by amending the Local Government Operations Act 2017. 

Until the provinces explore local resources and lessen dependency on the centre, they are unlikely to bring the desired level of economic transformation. In the changed context, they must focus on youth entrepreneurship schemes so that youths will not leave the country in search of better job prospects abroad.  Nepal has adopted cooperative federalism that demands sound coordination between the three tiers of government. They will be able to fulfil the aspirations of Gen Zers by prudently utilising available funds and efficiently deliver goods and services to the citizenry.