FederalismHigh Priority2 years

Reform #3: Move Power from Kathmandu to Provinces and Local Areas

Give real decision-making power and budget control to provincial and local governments so people don't have to go to Kathmandu for every approval.

The Problem - Detailed Analysis

Everything gets decided in Kathmandu, creating long delays and opportunities for corruption. Every budget, project, and approval has to go through the center, making simple things complicated.

Proposed Solutions - Phased Approach
  • 1Implement constitutional powers already given to provinces and local governments
  • 2Give 60% of national budget directly to provinces and local areas
  • 3Let provinces keep 40% of taxes collected in their areas
  • 4Allow municipalities to approve projects up to 50 crore without federal permission
  • 5Let provinces hire and manage their own civil servants
Real World Evidence

Indonesia reduced central government dependency from 82% to 48% through decentralization

Philippines increased local government funds by 55% through decentralization

Switzerland makes most decisions at local level, creating efficient, clean government

Implementation Timeline
1

Use existing constitutional provisions and change federal laws immediately

2

Complete administrative transfer to local governments within 2 years

3

Transfer budget authority to provinces and local governments

4

Set up provincial civil service systems

Performance Targets

Transfer 60% of national budget to local levels

Provinces keep 40% of taxes within 3 years

All municipalities get 50 crore approval authority

100% compliance with constitutional decentralization requirements

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Quick Information

Federalism

High

2 years

#3 of 27

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