In this article, policy analyst Ramesh Shrestha examines how Nepal’s federal system faces coordination challenges between central, provincial, and local governments. The author highlights that unclear roles and overlapping responsibilities often slow down public service delivery. Drawing on recent budget data, the article shows how stronger fiscal decentralization could empower local units to innovate and respond to community needs more efficiently. It also suggests revising intergovernmental communication mechanisms and capacity-building programs for municipal leaders. The piece concludes that a more inclusive and transparent governance framework is essential for deepening federalism in Nepal.
