Budget reforms for subnational autonomy

Conditional grants given to subnational governments in Nepal are restricted.

Nepal's planning and budgeting processes are rooted in constitutional and legal frameworks designed to empower federal, provincial and local governments to operate within their respective jurisdictions. Article 59(1) of the Constitution grants these governments the authority to draft laws, prepare annual budgets and formulate and implement plans and policies. This constitutional provision is operationalised through various laws, including the Financial Procedures and Fiscal Accountability Act, 2076 (2019).