National Natural Resources and Fiscal Commission

250. National Natural Resources and Fiscal Commission: (1) There shall be a

National Natural Resources and Fiscal Commission of Nepal, consisting of a

maximum of five members including a Chairperson.

(2) The President shall, on the recommendation of the Constitutional

Council, appoint the Chairperson and members of the National Natural Resources

and Fiscal Commission.

(3) The term of office of the Chairperson and members of the National

Natural Resources and Fiscal Commission shall be six years from the date of

appointment.

(4) Notwithstanding anything contained in clause (3), the office of the

Chairperson or member of the National Natural Resources and Fiscal Commission

shall be vacant in any of the following circumstances:

(a) if he or she tenders resignation in writing to the President,

(b) if he or she attains the age of sixty-five years,

(c) if a motion of impeachment is passed against him or her under

Article 101,

(d) if he or she is removed from office by the President on

recommendation of the Constitutional Council on grounds of

his or her inability to hold office and discharge the functions

due to physical or mental illness,

(e) if he or she dies.

(5) The Chairperson and members appointed under clause (2) shall not

be eligible for reappointment.

Provided that a member may be appointed to the office of Chairperson, and

when a member is so appointed as the Chairperson, his or her term of office shall

be so computed as to include his or her term as the member.

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(6) A person shall be eligible to be appointed as the Chairperson or a

member of the National Natural Resources and Fiscal Commission if he or she

possesses the following qualification:

(a) having gained expertise upon being active for at least twenty years in

the field of natural resources or fiscal management, economics, law,

management, after holding a bachelor's degree in the relevant subject

from a recognized university,

(b) not being a member of any political party at the time of appointment,

(c) having attained the age of forty five years,

(d) being of high moral character.

(7) The remuneration and other conditions of service of the Chairperson

and members of the National Natural Resources and Fiscal Commission shall be

as provided for in the Federal law, and their remuneration and conditions of

service shall not, so long as they hold office, be altered to their disadvantage.

Provided that this provision shall not apply in cases where a state of

emergency is declared because of extreme economic disarrays.

(8) A person once appointed as the Chairperson or a member of the

National Natural Resources and Fiscal Commission shall not be eligible for

appointment in other government service.

Provided that nothing in this clause shall be deemed to be a bar to the

appointment to any political position or to any position which has the

responsibility of making investigations, inquiries or findings on any subject, or to

any position which has the responsibility of submitting advice, opinion or

recommendation after carrying out a study or research on any subject.

251. Functions, duties and powers of National Natural Resources and Fiscal

Commission: (1) The functions, duties and powers of the National Natural

Resources and Fiscal Commission shall be as follows:

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(a) to determine detailed basis and modality for the distribution of

revenues between the Federal, State and Local Governments out of

the Federal Consolidated Fund in accordance with the Constitution

and law,

(b) to make recommendation about equalization grants to be provided to

the State and Local Governments out of the Federal Consolidated

Fund,

(c) to conduct study and research work and prepare parameters as to

conditional grants to be provided to the State and Local

Governments in accordance with national policies and programs,

norms/standards and situation of infrastructures,

(d) to determine detailed basis and modality for the distribution of

revenues between the State and Local Governments out of the State

Consolidated Fund,

(e) to recommend measures to meet expenditures of the Federal, State

and Local Governments, and to reform revenue collection,

(f) to analyze macro-economic indicators and recommend ceiling of

internal loans that the Federal, State and Local Governments can

borrow,

(g) to review the bases for the distribution between the Federal and State

Governments of revenues and recommend for revision,

(h) to set bases for the determination of shares of the Government of

Nepal, State Government and Local level in investments and returns,

in the mobilization of natural resources,

(i) to do study and research work on possible disputes that may arise

between the Federation and the States, between States, between a

State and a Local level, and between Local levels, and make

suggestions to act in a coordinated manner for the prevention of such

disputes.

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(2) The National Natural Resources and Fiscal Commission shall carry

out necessary study and research work about environmental impact assessment

required in the course of distribution of natural resources, and make

recommendations to the Government of Nepal.

(3) Other functions, duties and powers and rules of procedure of the

National Natural Resources and Fiscal Commission, detailed bases required to be

followed in the mobilization of natural resources or distribution of revenues, and

other matters including conditions of service of the officials of the Commission

shall be as provided for in the Federal law.