Federal Implementation in Nepal: Progress, Challenges, and Regional Disparities
Nearly a decade after Nepal adopted its federal constitution, the implementation of federal structures continues to face significant challenges. While the constitutional framework established seven provinces with devolved powers, the practical realization of federal governance remains uneven across different regions and sectors.
This report assesses the current state of federal implementation: capacity building at provincial and local levels, fiscal federalism arrangements, service delivery mechanisms, and inter-governmental coordination. We examine both successes in decentralization and persistent obstacles to effective federal governance.
The analysis highlights regional disparities in federal implementation, explores how different provinces are adapting to their new governance roles, and discusses policy measures needed to ensure that federalism delivers its promised benefits of inclusive development, responsive governance, and reduced regional inequalities across Nepal.
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