Concept Of Federal Development In Nepal

Federal system or federalism is a political system where a country is divided into several autonomous states.

Each state in the federal system has its own government which is directed by a central federal government. Primarily, there are three working bodies i.e. Central Government, State Government and Local bodies in the federal system.

Nepal was then declared as the Democratic Federal Republic by the Interim Constitution-2063 BS. Currently, Nepali is divided into seven autonomous states. However, the naming of all the provinces hasn’t been finalized.

Administrative divisions of Nepal.

Nepal has been divided into seven autonomous states or provinces of which following are the names.

Provinces of Nepal with their respective capital.

Province Name Capital
Province Number 1 Biratnagar
Province Number 2 Janakpur
Province Number 3 Hetauda
Gandaki Province Pokhara
Province Number 5 Butwal
Karnali Province Birendranagar
Sudurpaschim Province Dhangadhi

Difference Between Federal (Central) Government and Provincial (State) Government.

Central Government Provincial Government
Central government exercise the power of defense, interstate relationship and foreign policies. State government exercise power of making decisions on health, education, trade, etc.
Central government acts as the head and may give or may not give powers to state government. State government has to follow the commands of central government.
Central government is ruled by president or prime minister. Provincial government is ruled by chief misters or governors.
It runs big hydro power, multi provincial projects. It preserves cultures, arts, languages, heritages, etc.
Central government manages national security and military stuffs. State government manages state security force and maintains public security.

Advantages of the Federal System.

  • Conflicts and problems can be solved at the local level. No need to drag the central government in every small matter.
  • Maximum utilization of means and resources.
  • No need to depend on the central government for everything.
  • Public participation is prioritized.
  • Healthy competition between different states of a country enhances development.
  • Local tourism, culture, tradition, and heritage will be well managed and protected.
  • It won’t affect the country although the central government gets dissolved.
  • Federalism allows the government to become more responsive to individual needs.

Disadvantages of the Federal System.

  • Federalism is an expensive system and can be unsuitable for small countries.
  • Federalism brings in different states, different states means separation. Such fragmentation may threaten the indivisibility and integrity of a country.
  • Conflict may arise about the border issues between different states.
  • Misunderstanding and dispute may occur in between the central government and the state government regarding the sharing of authorities and power.


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