Federalism / fiscal decentralisation
Provincial institutional and fiscal capacity under Nepal’s federal transition
An assessment of Nepal’s seven provincial governments examined the institutional and fiscal foundations of federalism. Governance and financial data, perception surveys and provincial fieldwork connected staffing, mandates and accountability with fiscal autonomy, expenditure responsibilities and implementation constraints.
Context and purpose
Nepal’s federal transition created new responsibilities for provincial governments. The assessment examined whether institutional arrangements and fiscal capacity across all seven provinces were sufficient to fulfil those mandates.
The work
Governance and financial analysis were combined with perception surveys, consultations and provincial visits. Review covered staffing, intergovernmental transfers, budgets, financial management and coordination across levels of government. Institutional incentives and administrative gaps informed the sequencing of reform recommendations.
Outputs and use
The provincial institutional and fiscal assessment set out capacity-development and reform recommendations. It supported discussion of financial management, accountability and implementation priorities, remaining distinct from the later national federalism baseline.