Federalism / public finance
A national baseline for federalism and local governance in Nepal
Nepal’s federalism baseline connected national survey evidence and fiscal analysis with the realities of provincial and local government. The work examined political, administrative and financial relationships and established indicators for tracking institutional performance, accountability and the implementation of decentralised governance.
Context and purpose
Nepal’s national federalism baseline sought to establish how decentralised governance was functioning in practice. It examined political, administrative and fiscal relationships as a reference point for tracking institutional performance, accountability and service delivery.
The work
Survey tools and methodological notes guided the combination of fiscal data, secondary evidence, consultations and field visits. Analysis linked expenditure mandates and transfers with citizens’ perceptions. Qualitative and behavioural indicators addressed inclusion, collaboration and accountability across government levels.
Outputs and use
The inaugural State of Federalism report brought together baseline values and institutional recommendations. It provided a public reference for subsequent monitoring and discussions involving the federal ministry, provincial governments and development partners.
Further reading
Reports & publications
UNDP Nepal / 2026
Nepal: The State of Federalism Report 2025 (opens publisher website in a new tab)
A baseline on provincial and local governance under Nepal’s federal system.