State Restructuring and Governance


Nepal’s new constitution has greatly expanded the rights and jurisdictions of local government bodies.  However, challenges remain in building the capacities of local governments to carry out their new duties, and in coordinating with federal and provincial-level governments to ensure cooperation across the three tiers of government. For example, the success of local governments will depend to a large extent on adequate funding from the center, through mechanisms such as the intergovernmental fiscal transfer system and National Natural Resources and Finance Commission. There is therefore a need to collaborate with the National Natural Resources and Finance Commission to enable a just and fair outcome for all governments, in particular local governments.