KATHMANDU: Vice-Chairperson of National Planning Commission, Dr Prakash Kumar Shrestha stated that the local government plays an important role in the development of rural areas.

Delivering his view in a discussion on rural economy organized by Visionary Shreekant Adhikari Foundation here on Monday, Vice-Chairperson Shrestha asserted that since local government is the permanent government, it plays a crucial role in rural development.

“Local government can deliver results on rural development,” he said. He shared that National Planning Commission has been working for the development of backward settlements by providing complementary budgets to lagging local governments.

According to him, the rural development began to gain momentum in the wake of political movement in 1990. He observed that villages became increasingly deserted due to the Maoist insurgency. He argued that federalism is an important link for rural development.

Likewise, Comptroller General, Shobhakant Poudel, emphasized that the country should focus on development by utilizing its demographic dividend.

He noted that although over Rs 174 billion is being spent annually on federalism, the returns have not been as expected.

Other participants such as Constituent Assembly member Dr Khimlal Devkota weighed in that the implementation of federalism has contributed to the sharing of power in rural areas, strengthening local governance, development of infrastructures, fiscal transfer, modernization of agriculture, social inclusion and economic development.

Also speaking in the discussion, women right activist Bharati Silwal acknowledged the pivotal role of women in development of rural economy.

Foundation’s Chairperson Gayattri Adhikari shared that various programmes will be organized to celebrate the birth centenary of Shreekant Adhikari, a social activist, educator, historian and political figure.

The Foundation is established to honour the memory and legacy of Adhikari’s known for his contributions to education and community development.