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Implementing federalism: The case of Nepal

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  • Roy W. Bahl
  • Andrey Timofeev
  • Serdar Yilmaz

Abstract

The new Constitution of Nepal established a federal system of governance in 2015. Implementation began in 2018 following the 2017 subnational elections. The new system is comprised of seven provinces and 753 local governments. The constitution assigns important functional responsibilities to provincial and local governments and mandates that they have significant autonomy in deciding how services will be delivered. Subnational governments accounted for over one‐third of total government expenditures planned for FY2021, financed primarily by intergovernmental transfers. This paper describes the new federal system, discusses the early implementation successes and challenges, and draws some lessons from Nepal's experience.

Suggested Citation

  • Roy W. Bahl & Andrey Timofeev & Serdar Yilmaz, 2022. "Implementing federalism: The case of Nepal," Public Budgeting & Finance, Wiley Blackwell, vol. 42(3), pages 23-40, September.
    • Handle: RePEc:bla:pbudge:v:42:y:2022:i:3:p:23-40
    DOI: 10.1111/pbaf.12314
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    References listed on IDEAS

    as
    1. Roy Bahl & Richard M. Bird, 2018. "Fiscal Decentralization and Local Finance in Developing Countries," Books, Edward Elgar Publishing, number 17561.
    2. World Bank, 2019. "Nepal Development Update, December 2019," World Bank Publications - Reports 32891, The World Bank Group.
    3. World Bank, 2013. "Nepal : Small Area Estimation of Poverty, 2011," World Bank Publications - Reports 16569, The World Bank Group.
    4. World Bank Group, 2019. "Nepal Development Update," World Bank Publications - Reports 31802, The World Bank Group.
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