(1) The functions, duties and powers of the National Natural
Resources and Fiscal Commission shall be as follows:
(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.
(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.