Strengthening federalism

Intergovernmental relationships are to be refined through experience and practice, not directed by laws.

Article 232 of the constitution clearly states that federalism in Nepal is based on the principles of cooperation, coexistence and coordination as it visualises a non-hierarchical relationship between the federal units. Further, the constitution spells out the spheres of government as autonomous (exclusive functional assignments) and interdependent upon each other through concurrent functions. The constitution provides the sub-federal units (provincial and local governments) extensive powers to prepare and execute an annual budget, formulate and implement laws, policies and plans on any matters within their respective jurisdiction.