Implementing federalism: The case of Nepal

The new Constitution of Nepal established a federal system governance in 2015. Implementation began 2018 following the 2017 subnational elections. is comprised seven provinces and 753 local governments. constitution assigns important functional responsibilities to provincial governments mandates that they have significant autonomy deciding how services will be delivered. Subnational accounted for over one-third total government expenditures planned FY2021, financed primarily by intergovernmental transfers. This paper describes system, discusses early implementation successes challenges, draws some lessons from Nepal's experience.