Introduction to Federalism in Nepal

Federalism is a constitutional mechanism that divides state power between different levels of government to ensure that the same territory is governed by two or more autonomous entities. In Nepal, this system was adopted to manage the country’s vast social, cultural, and geographical diversity while ensuring local participation and national integrity.

1. Structure of Nepali Federalism

According to Article 56 of the Constitution, the Federal Democratic Republic of Nepal is structured into three main levels:

• Federal Level: The central government acts as the overarching body.
  
• Provincial Level: There are 7 provinces, each with distinct territorial boundaries and clearly defined jurisdictions.
  
• Local Level: This consists of 753 local governments and 77 districts.
  

2. Distribution of Power (Schedules 5–9)

The Constitution provides a clear division of powers to ensure “self-rule” and “shared-rule”:

• Federal Powers (Schedule 5): Includes national defense, international relations, currency, and large-scale infrastructure.
  
• Provincial Powers (Schedule 6): Includes state police, state-level electricity, higher education, and intra-state trade.
  
• Local Powers (Schedule 8): Includes basic health, secondary education, local roads, and local tax collection.
  
• Concurrent Powers (Schedules 7 & 9): These are shared responsibilities, such as education, health, and disaster management, requiring coordination between the levels.
  

3. Principles of Governance

Nepal practices Cooperative Federalism, where the relationship between the three tiers is based on the principles of cooperation, coexistence, and coordination (Article 232). While each level has exclusive powers, the federal level holds residual power for any matter not specifically assigned in the schedules.

4. Strengths and Challenges

• Strengths: Federalism brings governance and public service delivery to the people’s doorstep, addresses social conflicts, and ensures proportional representation of marginalized communities.
  
• Challenges: Current hurdles include high administrative costs, inadequate human resources at the local level, delayed federal legislation (like the Civil Service Act), and over-dependence of subnational units on federal grants.