Assignment of Functions Across Levels of Government in Nepal: Summary Report

In: http://hdl.handle.net/11540/12605

Open Access

Abstract

The Constitution of Nepal has adopted a three tier-system of federalism in which the functions and powers of the federal, provincial, and local levels are allocated in exclusive and concurrent lists in Annexes 5-9. These functions were further unbundled by the Government of Nepal (GoN) through an executive decision. The Allocation of Business Rules of the federal and provincial governments details ministry-wise functions at their respective levels. The functions and powers of local governments are enacted through the Local Government Operation Act, 2074 (LGOA, 2017). The arrangements for inter-governmental fiscal transfers are laid out in the Inter-Governmental Fiscal Arrangement Act, 2074 (2017) as well as the National Natural Resources and Fiscal Commission Act, 2074 (2017). Federal legislations and amendments of various sectoral laws further specify the functions and responsibilities of the federal, provincial, and local governments in the changed constitutional context. Functions of several laws related to the implementation of fundamental rights specified in the Constitution have been allocated to the three levels of government. Despite efforts to implement these provisions, there are inconsistencies, overlaps, gaps, lacunae, and challenges in executing the functions and responsibilities entrusted to the different levels of government. This summary report attempts to identify these issues in the allocation of functions and expenditures across the three-levels of government,2 and focuses on key sectors including education, health, agriculture and livestock, and physical infrastructure development.