Opinion | Debate on federalism should extend beyond politics
Summary
Nepal's federalism, established to promote political inclusion and regional autonomy, has coincided with stronger national economic growth, higher capital investment, and improved fiscal performance, though regional economic disparities persist.
Key Points
- Nepal’s federalism was designed to promote inclusion, regional autonomy, and decentralised governance beyond administrative concerns.
- Economic indicators like GDP growth and capital spending have improved since provincial governments became operational post-federalism.
- Bagmati Province continues to dominate Nepal’s economy, while other provinces show only modest economic gains.
- Fiscal space for provinces remains limited, requiring expanded autonomy and collaboration to realize balanced regional development.
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