Social and Behavioral Sciences Commons^™

The Fiscal Architecture Of Subnational Governments In Federal Nepal, Khim Lal Devkota

ICEPP Working Papers

The formation of the three tiers of government represents a novel experiment in Nepal’s federal journey since the adoption of the new constitution in 2015. State power in the former unitary system, both rights and responsibilities, has been divided across federal, provincial and local tiers of government, with a mix of exclusive and concurrent powers for each. In matters within their jurisdiction, subnational governments can formulate laws on financial rights, set their own budgets, make decisions, devise plans and policies, implement those plans, levy taxes, and collect revenues. In the roughly three years since devolution went into effect, a few …