CONSULTING ASSISTANCE ON E CONOMIC RE FORM II DISCUSSION PAPERS The objectives of the Consulting Assistance on Economic Reform (CAER II) project are to contribute to broad-based and sustainable economic growth and to improve the policy reform content of USAID assistance activities that aim to strengthen markets in recipient countries. Services are provided by the Harvard Institute for International Development (HIID) and its subcontractors. It is funded by the U.S. Agency for International Development, Bureau for Global Programs, Field Support and Research, Center for Economic Growth and Agricultural Development, Office of Emerging Markets, contract PCE-C-00-95-00015-00, Task Order #39. This paper also draws from the section on intergovernmental fiscal relations of the study on Tax Reform in Nepal: A Comprehensive Review, Harvard University, Cambridge, 1997. Copyright 2000 by the President and Fellows Central-Local Fiscal Relations in Low-Income Countries: The Case of Nepal Glenn P. Jenkins Roy Kelly Rup Khadka* CAER II Discussion Paper No. 69 August 2000 The views and interpretations in these papers are those of the authors and should not be attributed to the Agency for International Development, the Harvard Institute for International Development, or CAER II subcontractors. For information contact: CAER II Project Office Harvard Institute for International Development 14 Story Street Cambridge, MA 02138 USA Tel: (617) 495-9776; Fax: (617) 495-0527 Email: caer@hiid.harvard.edu