Decentralization Act 1982

Regmi Research (private) I.td. Nepa.l l'tL..>ce Llane ous i..>eridt' Val. 6/87 Kathmandu: May 20, 1987 Regmi Ville, LazLmpa t , kathmandu Telephone: 4-11927 (Not meant for public sele or distribution. Reproduction in any form wi than t pe rmts sdon strictly proh1bi ted). Decentralization Act, 1982 History November 21, 1982 1)acember 9, 191!34 November 10, 1986 Qonsolidated Text • •• • •• ·.. First Promulgated. Nepal Rajap~tr&, Vol. 32, No. 36 [Extraordinary); Marga 6, 2039. First Amend~ent. Nepal RajaRatra, Vol. 34, No. 47 (Extraordinary), Marga 24, 2041. Second Am~ndment. Nepal Rajapatra, Vol. 36, No. 31 (Extraordinary), Kartik 24, 2043. Preamble: Wherec.:s it is expc'r'ient to ensure wide pub H c participation in the appr-oj.ra. tion of resour-ces and balanced distribution of the frui ts of development wit h the objective of establishing a sccf.ety freij from exploitation so as to promote people's welfare os eLvisioned by the partyless democratic Panchayat system; Wheret,w i 11 -»a!Jv,J..jJeetielGrt aa-c<:!f;l.iis.bllliail aJ:.ffrc~'i1J' .tem for the formulation and exo cuai.on of phms at the local 18''''e1 according to the situ8tion of regions and areas, and promote at the 10 caL level i tse.U ~ 1'1'J" c.:if711 cy needed for t he performance of such tasks so as to derive maximum advantage out of the ccuntry t s geog:~aphico.l, economic and cultural diversity in t he task 0 f national development, inasmuch as the talent, potential and requirements (of regions aud areas) differ according to such diversity; Whereas it is expedient to devalop democratic practice from the lowest levels of the partyless democratic Panchayat ~ystem and ensure institutional growth of local Panch~ats So as to enable them to think in 1erms of all-round development of the people of their respective areas and assume responsibil1tias; And whereas Lt is expediont to decent rali~,e aut hori ty in order to enebLe the L,c;oplc to t ake c.ecisions and make arrangements t h~;m::1el\'':';3 il liT t:,ars ]'oelating to their day-to-day needs 2nd i,n uwth:' ('8 nl'f,' (,[;j 1 .: pub.l f.c lifu; Now therefore, Hi~:~l~ je.st.Y I<.ing B;i:rendra Bir Bikram Shah l)uV has enncted this lrn,; en tj13 ndvd.co arid with the approval of the Nati or.a.l Panchayr.t . Ch3pt8':' 1 Prelirdnary 1 • S hart Title and Commencoment (1) This law may be called the Decentralization Act, 1982. (2) Section 1 of this act shall come into force at once, and other Sectior.s shall come into force from the date prescribed by H~s Majesty's Government by notification in the Nepal Rajapatra. 2. D~fl11itiOIlS Unless otherwise meant with re~erence to the subject o r- coutex t , .i1.1 t.ru.s uc t , (e) weal P2nehny~'t ...,ans the Yilla~e, Town and DistrL~:t Pan chay.i t e , (b) Di::3tr-iet Dbv,Jlopment Plan means t he development pl.ar, menLiol>:C;' ill Section 6. (c) Qffiel:J-LH;ari;Jr:~ u<,an the Chairmen, Vice-Chairmen and memners of' Village, Town and District Panchayats emp.Loyeee of ai-strict level government offices connected with development who fun~tion und~r the general buid0Ilce of District .Panchayats, and the employees of local Panchuyats. (d) 'amber of the ~ational a cha at means the elected or nominated me~ber of t e Nntionsl Panchayat. The term includos members of the National pancl'Jayat from the concern6d districts who occupy the post of Pri~e Minister, Deputy Prime Minister, M1~ster, Mtnist~r of Stut0, or AS81~tmlt Minister or Ghair~an or Vice-Chairman of the National Pan~hayat, if any. (e) Prescribed or as prescribed means prescribed or in t he mann~ pre so1'-1bed in rules framed under this act. j Ch<-112ter 2 Decentraliz,:.1tion of l\~;.:J.p.Qnsibility and Power 3. Hesponsibility :;.l.!Jd Po," 131' of Lo cal 1?anehg.y§.ts ( 1) The responsi1Jility to operate all district-level deveLcpmen t activi tit-.;s to be unaer-t aken in a district for the development of the distri'ct and for the genera1 interost and welfare of the 'local inhabitants shall be vested in the locnl Papchayat under this act. (2) The power to formulato development plans and construction projects of all tYPeS to be undertaken or operated at the local level uno e r the distriot development plan, collect £lnd appropriate resources, supervise, operate and evuluate ~l~ns Dhall vest in the local Ranchayat under t his act. 4. Functions, Duties and Powers of !ecal. Panchayats lNr the purpose o r t hi s act, not vf t he t andfng anything contained in current law, the functions, duties and powers of Village, Town9 ar.d District Panchayat s and Assemblies, Ward Commdt t eea of Villngu and Town Panchayats and of t.he office-bearers and ~embers of local ~chayats shall be as prescribed. 5. District-Level Offices to Exist as Branch Offices The d istri ct-level ue ve Lopmant-c-e Lat.ed 0 ffices of His Majesty's Government mentioned in Schedule 1 shall exjst as branch offices of the District Panch~at Secretariat. PrOVided that the power vested in such offices or in cr~efs of such offices un6er curren~ law, except in aatt.rs relating to formulation and operation of development project.e, shall not be subject to tde control of any other offioe or office-bearer. ChHptclr 3 Developm~nt Plans of Local Panchayats 6. District Development Plan There shall be a aistrict development plan which shall be a combined f'o rm of t ho projects prescribed to uo implement ed at the local level by tt~ district-level development-related offices of His JVlajl;;isty' s Government t hrough the District Panchayat with the ruSou:'~C;(:S received from His Majesty's Government, and the const uc t Lon and other projects of all categories to be TmpIement ed by local PMchayats at the local level through thdir uwn r-aaour-cec or the resources and grarIts received from His Najesty's Government. 4 In case, a dispute arises as to whether or not any plan L:3 tr;LliJ opurL tt:U u tL 11<;1 local. level, it shall be dacided on by His lVlC).jesty I s Government. 7. l\~riodic PIons to be Formu.lntGd Erch District Panchayrrt shall be requ.i.:red to pr-epar-e a periodic p.Lan fer t he dcveLopmerrt of t he district 'Under its jurisdiotion. 8. lormulBtion of flistrict Dltv<;lopmunt Plan (1) Each ye~"r dvery District Panchc::yat ~.h:a.ll be r-oqutred to f'o rmuLrrt.o (1 district c eveIopment plan for the next fiscal y~ar within tiw presoribed time-limit on the basis of the pe.rLo dd.c plan prepared under Section 7. (2) The district Gc::velopment plan mentioned in Sub Section (1) snell 1'..) formulated as an int~grated district dev8lo~illBnt plan by combining the resources and materials ava.i Lr.bLe from the following sources: (a ) District Panchuy at." s own labor, resour ces ana IDa tar i al.s , (b) Grc.Ilts to be o ot a t.ne d by t he District .Panchayat from His lVlajesty: 0) Government or other institutions. (c) The amount of e xperisee to be incurred and investments to be made in various sectors by His lVlajesty's Governm0Ilt in t h,; co ncer-nc d district for the implen~ntation of district-level development plans. (3) Subject to the policies and gufde Hnaa prescribed by His Maj@sty's Gov8rnment as those to be followed while f'o rmul at.Lng plans for d;i.fferent sec tor-s , t~ plUI.lS rE;loeivod from Village and '?own Pancheyats shall be regarde8. u the matn basis while formult:.lt1ng the district diJvolopmunt pIon under Sub-Section (2). (4) It shall be the responsibility of the National PlannjJlg Commission to ensure the cooperation of the 0 concerned circlus in formulating or directing the formuLc t Lon of the district development plan in each district. (5) The appropriate organ of p~s Majesty's Government shall be rGquired to make a vaf.Lab Le to District .Panchayats the policies and gQidelines to be provided by His Majesty's Government uno er Sub-S<)ction (3), and particulars of expend I ture end Ln ve s t.merrt to be; made by His Majesty's Government for the next fiscal year under Cla'U.se (c) of Sub-Section (2), witnin the prescribed time-limit during tho current fip I')ul year. (6) 5 Thl) N:ltlo!lal Pl2.I~UiIJe:~ comai.ss ron shall ~t approve any p Lan or p ro gr-am whi.c h nr.s been formulated by any Lns t i.t u t.Lon in i.:UY l Ls t rLc t for t he purpose of district 10v.:.;1 u o JulopmlJnt wcr-k s vii thout preparing a district development plr.n , o r in such a way that it contradicts the district devulopmont plan, ond the expenditure to 00 incurred ther0on. Provided thet: (a) In case the National Planning Commission is sat Ls f'Led tort local Panchayc t s have failed to formulEte tho district development plan in time, it may approve the aistrict development plan pr8s0nted by the appropri~te organ for the ccncc rned J'\j:lr, and too expenddture to oe incurred thereon. (b) In CF 50 t h.. district development plan submitted by any Distri~t Panchayat is considered inadequate from the viowpoint of the overall development of the district, the Nr-tLonaI .Planning Commission may npprovG adc.itioncl projects. 9- Prioritiys to GO Followea While Formulating District DevelopmentPI.r:n Tho d.istrict Quvulop:c.iJnt plan shall be ordinarily f'ormu.Lr.t ed on t he br.eds of the following priorities: (a ) .Projects whi.ch provide d.irect ben e f'Lba to the gener-al public, nnd which fulfill minimum needs. (b) Proj~cts which holp in increasing agricultural pro6uction. (c) Proje cts wbich carl be Lmp Iement.ed through local resources una skills. (d) projects which help in incr0asing productivity end employment opportunities. (e) Projects which ~vs baGD assigned priority in national-level plans. (f) Projects whi.ch llelp to protect t~ environment. 10. Pl?m Formul[..tiol1 C(lmmittOE: Every District Pancnrya t shall ~roquired to form committees as merrtdone d iIi scnecure 2 for the purpose of fonmulating district duvolopment plens. The functions, 4uties and pow~rs of such comm~tte~s shall be os prescribed. 6 11. Formulation of PinEtl Dr"I!"+; of Projects, ~ (1 ) After the comut ttess f'or'med under' Section 10 have fo rnu l ft2d t ruir rs,.;:,:p0cti VG programs, the 1.0 cal Dt-Jve1ovm,:::nt Officer shall convene a joint meeting of all commi,t td0S in or-ue r t (j pr-epare a be.Lanced and integr~ted district developmont plan by comparing t he pr-ogr-am formulatuci by one committee with the one formulated by anothsr and reviewing the programs. (2) T hu m~eting convened under Sub-3ection (1) shall be preSided ever by the member of tho National PanchDyat representing the co n ce r'rie d district. In the case of t he district whicb h8.5 more than one National Panch-iyat member, it shall be presided over by each of them fer ope YGGr by rotation according to the a.Lphab at Lca.L order. 'rho NatdonaL Panchaya t members who are not presiding over t he meeting shall attend j o Lnt m~;Gti.n! s of cornmi, t tee as members. In the ab aen ce of the 1'JF:tional Panchayat member who is rljquired to preSi(~f;: over .io i nt meGtin~,;s of conunittees, another Na t i.oriaL Pane hay cit m.nabe r shall pr-es.Lde over it according to the a.Lpnabe t.Lca.l order , Provid0d 'tr'JtiL case any Neti.onal Panchayat member canno t a ttend nny joint meeting of committees because of Nution,c-'.l .: .uic haya t ses ad on , or any other factor, the; Ch,lircL~'rl)f t he concer-ned District Panchayat shall preside oven' J:iint IDE}dtine;s of committees. (3) Oncu a p Lar. iB finali~ed and ce cLs Lon IDEde accordingly at a joint meet i.ng oi commit t.ees , t he draft of such plan shall b0 ror-war-doc to the District Panchayat , (4) After holding nOCGssary debate on th0 draft of the plan presented before the meeting of the District ~anchayat un~er Sub-Section (3), and also determining the order of priorities of proj,;,cts, it shal: forwa.rd it to the District Assembly for t'J.nal approval. Su('h plan shall be deemed to have been approved once it is appr,ov:o.Q. by a meeting of th8 District Assembly • • 1A. finalization of District Development Plan (1) The Di~trict PaDch~yat must conv~ne a meeting of the D1strict As~embly in time for approving the diet~ict d~velopment plan. In case it does not do so. the appr-opr-Lat-. organ may~ j,.s~ue n.~co~sary directives to the District Panch~at to convene a m~eting of the District Assembly. If a ~e~cing of the D1strict ASsemoly car.no t bo held even in accozdance with such d1rectiv0s, the appropriate or~an ma7 draft the district developmuIlt plan with the p12rl paS~8" ,y the District Assembly duri~ t ha prevfcus y~r:r as t:;h,a main basis. '7 (2) In CI Se t tid o Ls t r-Lct .rovc Lopmcn t p I an p na aod by the Dh:trict A~:"A;I!1Uly ..::xcu~do the budgetury limit, or is .in contl"8.';entiol1c;/ Sub-~Gction (3) of Section 8, 't hc :ipp:ropr:i:~t0 orc::.;.!: may finaliz\J tho district de vc Lopuien t pl.an in such a way that it remains within the bud ge trr'y limit if it exceeds that limit, or is consistent wit h the policy pr-e acr-Lbed for t 1'E appropriate sector if it is in contravention of Sub-3ection (3) of Section 8. 12, To Function as bxecutive Officer The Local Development Officer sholl be required to function as executive officer of the District Panchayat in respect to the formulution, implementation and evaluation of the district development plan, 13. Fopuul8tion of Town Dovelopm8nt Plan (1) Every Town Parwh[!y:.::t shall be required to formulate a periodic plan for t,o develo~ment o~ the town under its jirisdict~on. (2) Each year every "'I'o ..m Puric hayrrt shall be r-equf.r-e d to formulate ~ town d~velopillent plan for the next fiscal YUf:J.r within t na prase cbed time-limit on the basis of the periodic plan preparod under Sub-Section (1). (3) The TOvill Panchayu t shall formulht~ t he town development pLan merrtLoncd in SUb-S0ction (1) t r'en t Lng the pro jects deman dc d by each war-d at:; the mai.n basis subject to ~~idelil1es given by His Majesty's Government from time to 't Line , with dUG consLde rt.t Lon to the Town Pencheyat t s own 12tor, rdsourC0S &nd materials, and the grants to be cb t ai.ned from His IVJ:9.jE;sty's Government. The priori ti s Lndi.cut ed in ;;iGctiOl1 9 e ha Ll, be taken into ccnsLde rc t Lon whi10 formuluting a plan in this manner. (4) For t he purpose of :/:'ormulatirlg the town development plan under l,nif, section, the Town Panchaya t may form necessary committe",s including,as far as possiblu, bxperts in r-eLovarrt sub jlj cte , 14. Formulation of Village D~velopment Plun (1) Every Village Panch2yat shall form~lnte a periodic plan for the devolopment of the Village under its jur1:lfli ct10.~. (2) Each year \NGry Villab Pancheyat aha.l I formule.te a VillagE; deve.Lo pment pIc.n for t he next fiscal year wi thill the prescribed tirr~-liPlit on the basis of the periodic plan prepared unoer Sub-Section (1). 8 (3) Subject to thu guid~lin0s and directives received frO:fi the Distri ct Panchr-yat , ..:very Village Panchayat ahal L pr~p(-lra D vl Ll.ag» development plan under Sub Section (1), wit n due consideration to its own labor, resourceS and materials, end the economic, material .md t.e chnf.ca.l cooper-atLon to be available from His Hajusty's Government, treuting the projects demanded by tn;.ch ward as t h,..; main basis, and keeping in view tl~ ~ri9riti0s indic~ted in Section 9. 15. S crutin.y c::nti Ch:H::'''f:Ilce COHlinitt~e A scrutiny 2nd C-learance eommittee shall De formed in the prescribed manner for t he purpose of scruttnizing and cLcur'Lng conet ructLon - rel:~tGd pr-o fe.ct e under- the deveLopruen t p Lan of the local Pancbayat a, ~xp13nation: For tho purposo of this suction, the ttlrlU "scruti.ny and. clearance II includes pe rfonnance audit. 16. District ::luPGrvision Committee (1) A District Supervision Committee, consisting of Notional Panchc;.yat membe r-s , -too Chai.rman and the Vice Chairman of the District Panchaye t , the Chief District Officer, t he Lo cc.L D('velopment Officer, and an Engineer from the Pu.blic Worl~ Section,or, in his absence, a person who performs nis functions, shall be formed in each district. Th0 ~ocal Developm0nt Officer shall also function as 3c'cre:tt:ry of t he District Sup0rvision Commi t tee .' The apprv.pr-Late Zonal Commissiondr must al.sc Leinvi ted to ~'Jt.!tiDgS of the (Distr1ot) Supervision Committee. (2) Every meeting of the 8up::;rvision Commf ttee formed under Sub-::lec..:tiUr1 ('I) ahaLl. be presided over by the National Panchaya t member representing the concerned district. In the c LBo of t he district .. hich has more ttu.:n one .NL,tional Panchaya t member, it shall be presided oval' by each of them for one year by rotLtion according to the alphabetical order. The National Fancnayut members who er(;;i not to pr-es i.de over llleeting s of the Supervision 'Committee shall remain therein as members. In the absen~e of th~ N~tional Panchuyat me~er wr~ is required to presiCle over a mJ:'eting, it shall be presided over by another National Panchayat member according to the alphabetical order. Provided thpt in case National Panchoyat members cannot attend any medting because of the National Panchayat session, or any other factor, the Chairman of Uj#:~&~~ District Panchnyat shall preside over it. (3) For the purpose of supervision of th~ district devel opmerrt plan and ensllrinc o c orv.nny urid l'.LtlC~ d.1Bcipllne in the COU!';3e of i..m.-mJo'lcr::8cl;atiol1 as well as of initiating appropriate ·1.l~tic.Jl: in; he e verrt of any errors being detected in t he e:...e cu t ,..on (of the district de ve Lopaerrt plan), the :pistri ct Supervision Committee shall have such functions, duties andiJIf,Hrs as may be pr-es cr-Lbod , 17. Service Centers. (1) Yor the purpose of mcl ing aVailable material and technical cooperation :LrJ regard to t he development work of Village Panchayats lying wl t hi.r; each area of the District Panchayat , His Majesty I s Govel"nment may establish one Service Center in such a way that it i3 located generally in tho center ~f such ar~a. (2) The Service Center established under Sub-Section (1) s hal] b e t hf::l Lo weut or{;.un of His Nl.ajesty t s Government responsible for providing assistance to Village Panchayats in matters relating to local development. (3) The functions and dut i.ca of the Service Centers shal.L be as ..follows: (a) To provide necess~~y services in ~ne fcrrmulation, implementation an Y'(~view of plans for the development (lIJ' \rillngo Pan chaya ts • (b) To help in the es t.ab.l i.ehmen t and smooth operation of conaume r-s ' comcrl t tees in Village Panchayat areas , (c) To make avaiLat.Le ~'llch techrlical services as may be rp(>ns~i~Y'V to tJil'1b.t C' \Tillage Panchaya ts to operate rnea r ueve.i.opmen t p rogr-ams , (d) To he Lp ?n8ur(~ t.h-: .wailabili ty of noc eaa ar'y financial and material re~ cur-cas to Village Panchayats. (e) To make periodic TGvieVls of the development efforts or 1Lillage Panchayate , (f) To cake the problems arid needs of Village Pancr.l.8yats to the higher level, and arrange for their inclusion in plans. (g) To encourage competition among Village Panchayats lying wi thin the area (of the District Panchayat) in developmental matters and arrange area-level meetings. conferences, and seminars of Panchayats and inspe~tion visits td<3~nabld them to exchange views on each others' exper-iences and problems and on ways to sol.ve them. (4) Other functions, duties and powers of the Service Centers Shall be as prescribed. 18. Review ROO~ to be Main tail'lc:a. (1) Every 10c&1 Pan chnva t sh211 be r"Jquired to make arrAngements for [i review room. Charts of the annual programs reh!ting to the development plan of the concerned Panchaya t , d.. t af.Le d particulars relating to progress re:p()I't ~ 6 t c , , shall be prepared. and displayed on Rn up-to-dat0 basi2 in such a review room. (2) Every six men ths , the office-bearers, members and employees of the concerned Panchayat shall Sit down at the review-room and review the development work of their respective areas. (3) In the course of review of district level development projaets under Sub~ection (2), the Zonal Commissioner' or a person designated by him may also participate in t~ review meeting. 19. Consumers' Committees. (1) In case any pro;ject tc be implemented by the local Panchayat is locHtod in t1 sinele ward, the appropriate Panchaya t shall form a Consumers' Oommattee consisting of not more than seven persons £rom among those expected to benefi t from .auch project under the chairmanship of the ohai.rman of the local vrrd committee. (2) In case any pro j I~C t to be imp lemon ted by the local Panchayat is Loca te d iI' more than one ward, the appropriate Panch ayat ~~lJal1 form a Consumers' Committee consisting of not r.o re than m na Per:=~ons from among those expected to beneri t from such project under the chai.rmanahf.p of one of the concerned ward comau ttee chairmen. (3) In case any projec"C to be implemented by the local Panchayat is located in more than one Village or Town Panch3y~t1 tha appropriate District Panchayat shall form ;;l Consumers' e'orrl.tni ttee consisting of not more than eIeven parsons from among those expected to benefit from such project under the chairmanship of chairman of one of the concerned Panchayats. (4) The functions, duties and powers of Consume~ Committees shall be as prescribed. Chapter 4 F~n.atCial Arrangements 20. Qoll!jction of Pan~hl1Y8t Dev(~lopment and Lqnjl TaJf>. ( 1) Every Vi.llaea or Town Panchayat shall \'1ri te to the .Dis trict Panchava t asking for the collection of Panchayat davelc-pment and land tr.. in the villag.. or Town Pancnayat area unce r its jurisdiction su·b.ect to the following cendf tions : (a) It must have p repa.rad thQ plan or scheme concerning 11 the purpose: for which tl-.1 amoun t cc Ll e c ted in the form of such tax will 1>3 spent. (b) It mus t have ,*,c>rl.\,;cl out appr-ox.i.ma'tg estimates of the total expend.i t ur-e required for comp.Le t Lng t he plan. (c) It must explic.itly mention 't he sour-ces from which the total amount of expendi t ur'e required for the plan is to be obtained and tho estimc"lh'.d percentage of such expenditure r0quirl::ldto be met through the Panchayat developnent and land tax. (d) It must explici tly indicate what arrangements have been mane for maintaining accurate accourit s and records of the proceeds of such tux. (e) A two-thirds majority of the total membership cf the concerned Village and Town Assembly must have approved the proposal for raising such t~~. (2) In case the District Panc haya t receives a wri ttC:!l request und~ Sub-Section (1), it shall conduct investigations, and if it is satisfied that the concerned Panchayat has fulfilled all the conditions mentioned therein, it shall wri te to His IVlaj~sty's Governmdnt asking for the ir;ap<>sition of such tax in such ,Vill&e;9 or Town Panchaya t area. (3) While raising the Panchay.rt development and land tax, the concerned Village or TOlr! Parichayat shaL.. prepare and maintain records of Land s within its area, as well as correct s tat.Ls t Lcul, r'e corrs regarding the yields of lands of par t i cu.Lcr- catt){',~ries, and forward a copy thoreof to the Dit>trict2·~n(;t)Y.'l~tt. (4) out of the amount r aiscu ,',8 Panc hayrrt development and land tax under this ~>?cti)IJ, fivt:; percent shall be deposited with the aonsolj.Ciated Fund , ten por-cent with the District Pano haya t Fund, and t he remaining eighty fiv~ per-cent; with the co nce r'ne d Village or l'own panchayat Fund. 21. Powur to Ruise Contributions. (1) The local Pan chayat may, subjeot to Sub-Section (2), re.ise contributions. Provided that such contributions shall not be ruisdd in t he form 01 t axe s , (2) A detailed plan and progrnm on whi ch the amount of contribution is to be spent shall be prepared, and passed by a two-thirds majority of the total membership of the concerned Village or Town Assembly, and then approved by the District Panchayat, if contributions are to be raised in the Vil18ge or Town Panehayat area; and 1n case the contributions art:' to be raisod by a District Panchayat, this must be approved by a two-thirds ma.lor-; ty of the totL.l member-s hi.p of -til'v;: Lstr-i ct Assembl,fl The amount of contr-fbut.Lons raised .i.n this manner shall be spent only on such plans or programs, and accounts of income and expenditurG shall be published for tlw information of the public. 12 Pro vi.ded that in CH;A:: it becomes necessary for any Village or Town Pancrmyat to raise contributions up to Rs. 5,000, th0 Village or Town Panchayat itself, and in caso it be comaa nc ce e aur'y for a Dl~Jtrict Panc haya t to raise Contri butionss up to Rs. 10,000, the District Panchayat itself, may decide to do so. 22. Collection of Dues as Government AprBars, In caae any person fails to.IJI,BY any tax, charges, fees, e tc , , prescribed or imposed by the Local. Panchayat, the same shall be recoverea by ~he District Office as if th~so wero go ver'nmen t Ilrr ears • 23. Allocation of Grant by Locr:l Pancheyat. The local Panchayat itself shall allocate the amount of the grant r-ece Lve d from His lrlajasty's Government for different purPQs~ 24.MoUL.tS to be Spent in Spe ci fied Sectors. The amount sent by His Majesty's Government for the purpose of distr~ct level work Shall not be spent in any sectors other than the one for which it is act.ually meant, nor shall it be spent in such £1 "day that it falls short of the amount specified for that sector. 25. I4mi.tation on Administrati\ Expenses. Local Panchayats shall not spend on administrative work more than the specified pe r cerrt age .)i' the amount raised from tQ.X3S, charges, fe I'; S , dut:i ns, cor,trauts, s t o , , or the amount of contributions or t he amount granted by HiS fl'Iajes ty' s Government for deveLopmcnt )urposes. Chapter 5 Arrangements H.egarding Audit 26. ,Audit of Account of local Panchayats. II (1) Accounts of income and expenditure Of local Panchayats shall be aucl t.ed every year. (2) 'fown .l?-.achayats and District Panchayats must conduct an internal audf t of t he accounts of their entire income and expendi.t.ur-e every threo mont hs , (3) For t he purpose of internal audit as mentioned in Sub-Ssction (2). the ~ppropriate Panchayat shall make arrangement for all internal auditor, and may establish an Internal Audit Division in its Secretariat or office. (4) Fin~ Audit of the accounts of Village Panchayatis , TOvm Panchayans , and .District Pa.nchayats shall be conducted by a person designated by the !~ditor­ General. (5) Every Distrj.ct Paric huvu t , 'l'OWl1 LJanchay·at, and Village .ro.:.. chr·y~,t must pr~~p:'x'(-j ;: finL:.l..cir~l s t atsmerrt wi thin th:r:'UB mcn t hs 0ft':!' t.h::· expiry of t h-. f'Le cu.l, year and hcrid 1 t UVl~ r to t he prrscn who audr ce nhe accounts , Tho oblit;;~tt:i on to f'ur'r.Ls h such a .st:::.tdment shell belong to t hoC} ctairTI:':,rj of t !x,? [}.ppropriate Panc hayet al'!~ t brJ Secretclr.v or' cl'J.i:d' Officur. (6) In case t[~ financial statement mention~d in Sub Saction (5) is not furnished, the of~ice - bearer merrt Lo ns d in Sub-Section (4) of Section 27 may t ake reesQX 'cl>lu :"'.etion ag r Lns t 't ho po r-aon who is urio er' oUlib,:'t.Lon 'to rarru s h it. ?-7. Auait Roport. (1) The person who andits the accounts of a local Eanchayat shall submit one C01)Y of f.he preliminary audit report to the Auditor-General'S Department, and another copy to too appropriate Panc hayat , (L\) The Auditor-Gunarl:l.1 shall prepare a report on the basis of t he reports re ce i vou under Sub-Section (1) and S't:.bmit it t. flis Majesty. In case His Maj6s~ SGr.ds sucnreport to the' appr-onr-Lat.« I\'liListrv, tUG lVli vj snr-v cha'LL send the rcUevfUlt pc:ttions thereQ"f to the appropriate Pancbayat , (2) After the preliminary report of the person wtw audits u,:~count:.3 is received '- .co r'd.Lr.g to Sub Section (1), in case it appears ~hat among the irregularities mentioned therein, certain amounts cannot b~ realized from the concerned p8rson if not realized immediately, the appropriate Fanchayat shall request the appropriate office-bearer to take action according to Sub-8ection (4) in respect to such amount. (2A) After the audd, t rfoJport mentioned in Sub-Section (IA) is received. the appropriate Panchayat must convene a moeting of the appropriate assembly within a maximum poriod of tm'ee montb~. present the roport at the meeting and have it discussod. (3) After the ~udit report is submitted, the meeting of the concerned assembly shr.ll regularise such casee of irregularity pointad out in the report as it can ragularize to the extdlt it CElD do so ad cording to current law. In the caae of other irregulari ti(;;lS which it cannot cloar in this IDCillner. the secrotary of t he concer-ned Pan c hayn t ~h~"ll rufer them to the 8,l)propriate l>dr8Qfl for ap:pr.olJri::.. k~ !lction to ensu.ro oLer.r-ance tbereof. (4) iUl BU.cb irr8gulari t Les as cannot be cLear-ed under Sub Section (3) shall be ref0rred to the Zonal Commissioner in the case of the Dis~rict Panc haya't or Town Panchayat , and to the 6hief District Officer in tho caSu of Village Panchayats for t he pur-pose of re coveryf or amounts involved in such irregulRrities). (5) After rec0iving a rbqu'st for the cl~p~ance of irrogu Iari ties under- sut--se ccf.cn (4). thlj concerned Zonal Commissioner or Chie j' District Offic0r shall act as follows : 14 (a) In Cd..ali of corruption, initiate action according to th0 provisions of th0 anti-corruption law. (b) In t ho ·~~s.u of n~,.id to r-o cove r nrrt.lars from any person, ini tiC;'.tu. .r.ct ron to r-ocover t he Same as if those were government arrears. Ch8p~er 6 fllis c(~l ]',neons 28. Power of His Maj0sty's Gov~rnm8nt. In case it so oeems r.e ce asar-y in pu¥ic- inta.r-est , His IvlajeCJty's Government !iJ.2S order or dIrect· the- reduction, withdrawal or rescinsi.on of nny tux, c har-ge , fee, duty, raised or levied, or any contract entered into by any local Panchayat , after ob t af.rd.ng a clarification from the 10caJ. Panchayat, and, if it so deems appropriate, explainins the reasons for doing so. It shall be the duty of the concerned .Panchayat to comply wi en such order or directive. 29. Delegation of powers. (1) Hisl!18jesty I s Government may, by no t Lf'Lca td.on in the NePt~l Rajapatra, de.Legate all or any of the powers vested in it under ttus act to any o~ice-bearer, institution, committee or employee. (2) The District Parichay r.t may delegate any of tho powers ve ated in it unue.r this act to any Vd.Ll.ege Panchayat or Town Panc haya t witil or without prescribing any cond.i t Lons , The District Panchayat may withdraw at any time t he power so de'legated. (3) The District Panc hayrrt, the 1'own Panchayat or the Village Panchayat rnn.y deleg:~:tE: any of t he powers vested in it to any member of the concerned Panc hayat or to any commi.ttee or subvcomrm ttee of members or to any employee. The concerned Punc hayet may withdraw at any time the power so delegated. (4) The Chc.irmc;n of the District Panchayat Qr of the Vill. If Tow~ Fanch~ynt may del~gate any of the powers va&ted in him to the Vice Chuirman of the concerned Panchayat, and, in b1s absence, to the member or Seeretary of the conoerned Panchavat. The Chairma~ of the District Pe~chayat or of the Village or Town Panchayat may withdraw at any time the power so delegated. Delegation of Powers Under Other Current Law. His Majesty's Government may,'~y notification Neaal Rajapatra, delegnte any of th~ ~ower~ vested un dr ether current law to any loc~l Panchayat or office-bearer of the local Ponch~~at, 31. (Repealed on De cember 9 t lqq4). in the in it to any 7. do. 8. do. 9. do. 10. do. 11. Other offices 15 524 1-m;:;loye,:?~; to be Und,;r tho I dmini~"tl'at;ivu ("ontrol of District f.';nchayat. The Local DtNelopment Officer and the chief's of the offices mer.t t on-u in Scr18dul(~ 1 shall f'unc td on u.nder t he gunGr81 ndmin"L:3t'''lti \' ~ co rrt.r'oL of t.he District .J?anchayat and the arr-angemerrta in ruspect to such administrative control ahal.I ue as pro scribed. 33. Government Attorney to Tender Advice. The Govcrr:.tftant at tor-r.ey s he.l.L tender advi ce if sought by the District .ianc.hajat in the event of any legal hitch arising in the course of performance of its functions. 34. Power to Frame Rules. His £vI sjesty' s Government may f'r-ame rules to implement the objectives of this act. 35. 'pOWGr to Remove Obst2clt:.'[~. If any ob s t a cIe r:rises Ln the Lrnp.Lomerrtu't i.on of this act, His l'1ujesty' fi Gcve rnment may, by notifi cation in the N~pal Rajppntra, issue an order to r~mOV8 such obstacle, and such order nh,:ll bo do omcd to be pnrt of this act. 36. Action to be Tr,ken Under 1 his Act. In matters pz'oviced for in t his act or t he' rules framed hereunder, action e naLl, bu t ake n r.c cor-dLng.Iy , and in other mat tcr-s , nc t Lon shr~ll 1)0 t·~l.;:,:n in ac ccr-o ar.co with current Ncp;=;l law. 37. Changes in S chucllllciS. His Ivrflje.3t~" s Oove rnru-rrt may , if so necessary, effect changes in tho sch(;dules t,,) this net by notification in the ~ep~l Rajapatra. Sch(~d'U.le 1 (Pertaining to Section 5) District-Leve], Dev>;lopment-Related Qffices. 1. Offices relating to ed~cation and culture. 2. <10. heal th arid population. 3. do. agricultur8 ~nd irrigation. 4. do. works and transport. 5. do. Water supply and hydro-electricity. •• do. f/Jrest and soil tUI1Servation, and environment. indus~ry, ,~~rce and tourism. 1*:. . local deve10pment and social welfare. Sajha ~nd ~oopQratives. connected with Davelo -"'l,ent. (Pert::.ir.i.Lli! t\:· s,)ct-ion 10) &:.~ ::;.~.. :r'f~ 1~"-U1h ti ~! Cor::rJ. tt;..;.; (a) Agricu1ture and IrrigatioT. CoIImlitt(~e. (1) Two persons desi{,:natr;)d by tho Dis,trict Panchayat from among its members. ·.. Member • (2) ••• .Member'. Chairman of the Distri ct working Commit tee 0 f ~ he I·,epal .Peasants I Organization. (3) Chairman of the District Working Committee of the Nepal Women's Organization. • •• Member. (4) (5) (6) (7) (8) (9) (lO) (11) (12) Chairman of the District Working Committee of the Nepal Elders' organizatIon. Cb.a.i.rman of the District" worki.ng Committee '''If the Nepal£x-6arVice men's. Orga.n.ization. District Chief of the Agriculture Development Bank. Land R6 fo rm Offi cer • District Ch.i.e f' o f the AgricultlU'al Inputs Corporation. Livestock Development Officer. District Irrigation Officer. District cooperative Officer. AgricuJtural Development Officer. • •• ·... • •• • •• • • • • • • ·.. • •• • • • Member- • Member:.. • Member-. Member- • Member. Member • Member' • Member • Member-5ecretary. (b) Works and f\liaintenallce Committee. (1) Two persons designated by the District .Panchayat from among its members. (2) Cbairmarl of the Dil::ltrict \':orking Committee of the ~epal Youth Organization. Chairman of the District Working Commi ttee of the Nepal EldeIS I Qrganizatj on. • •• • • • • •• Members. Member.: • Member'" "'"l ~7 ' (4) Chairman of the Dist·(~~~t. v/orking Committee 01' tile ", i'Jenf.,ll Bx Servicemen's Cr~sniza ,inn. ·.. Member • (5) Officer of the 1istri~t Works Section. Public... Member -secretary. (c) lad.ustrx t forest and Soj.l Consi"Jrv8tion Co rami ttee •... (1) Two persons designate d by the District Panc~Yat from among its IDE;mbers. ·.. l~iembers • (2) Chairman of the District Working commit cee of the Nepal .c:x-3evvice men's orgtinization. ·.. Member- • (3) Chairman of the District working Committee of the Nepal Workers Organization. (4) District Chairman of t he Chamber of COIDm8rCe and Industr~ (lJ) Dist!"1..ct Ina.ustry or Cottage Industry Off'ic er • •• ·.. Member • Il'1ember-,:'. 11:u.m:bcr-: • ( SA.) (6) Soil Conservation Of:f. .er , District ForGDt Officer or l>istri ct Cot t age IllduJtry Officer dc)signattJd by the Dis tri c t .t".lnc hayi, t • . .' . • •• Member"::. (d) Health and P0pulation Com.m:it.tC'::. (1) Two .Persons de sa.gnated by the Distri ct' Panchay at from. among i ts inembe r-e , ·." Members. (6) (4) (3) (2) Member""!,, Member • Member • Members. Member4' Member' • • •• • •• • • • ·.. ·., ·, , Member-Secretary.• • • chairman of tbe District Working Comm,i t teo o l' the !-JopEll WomOll ' ell Organization. ChairIDDn of th~ District Working Committee of the ~epa1 Youth Organi"ation. cnatrma» e f' thH Distr.Lc.:t Working Committee of the Nepal Ex Servicemen's Organization. District Chairman of the Nepal Red Cross Society. District chaar-mnn of .·;~8 Nepal Children's orgrcnizatiun. (7) Officer of the .Lli::tri, t }'arnily Planning Office, (8) District Health Oft'Lc.r". 13 (e) Education Committee. The District Educa t Lon Committee formed under the 1971 Education .Act s hal.I be regarded as the Sducation eommittee for the pur-poss of this act. jato; (1) National Panchayat; membur-a , the Chairman and the Vice Chairman of the District Panchayat, the Chief District Officer and tl~ Local Development Officer of the concerned district shall be the members of each of the aforesaid cemmittees. (2) Meetings of e ae h Committee shall be presided over by District Panct~at members for one year each by ro~~tio. according to the alphabetical order. *"****"***