Debt centralism vs federalism

Local levels having to raise loans is obvious as they are directly responsible for public services.

Eight years after Nepal’s federal constitution was promulgated and six years after federalism was implemented, whether the federal polity in general and fiscal federalism in particular could deliver on the promise of speedy prosperity for the nation is now cardinal. A year after a new set of elected executives in legislatures/governments took office, it is safe to argue that fiscal federalism is better functional than the other three pillars of federalism—constitutional, political and administrative.