Article 59: Exercise of financial powers

1) The Federation, State, and Local levels shall make laws, make an annual budget, make decisions, formulate and implement policies and plans on any matters related to financial powers within their respective jurisdictions.

2) The Federation may so make necessary policies, standards, and laws on any of the matters enumerated in the Concurrent List and other areas of financial powers as to be applicable also to the States.

3) The Federation, State, and Local levels shall make budgets of their respective levels, and the time for submission of budgets by the State and Local levels shall be as provided for in the Federal law.

4) The Federation, State, and Local levels shall provide for the equitable distribution of benefits derived from the use of natural resources or development. Certain portions of such benefits shall be distributed, pursuant to law, in forms of royalty, services, or goods to the project-affected regions and local communities.

5) If, in utilising natural resources, the local community desires to make an investment therein, the Federation, State, and Local level shall accord priority to such investment in such portion as provided by law on the basis of the nature and size of such investment.

6) The Government of Nepal shall have the power to obtain foreign assistance and borrow loans. Such assistance or loans shall be so obtained or borrowed as to have macro-economic stability of the country.

7) Provisions relating to the management of budget deficits and other fiscal discipline of the Federation, State, and Local level shall be as provided for in the Federal law.