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world The Hindu 2026-03-28

Nepal's Federalism Faces Controversy and Uncertainty

Nepal's federalism remains contentious as provinces struggle for fiscal autonomy, despite the 2015 Constitution creating seven provinces. The government is now relying on the RSP party to resuscitate fiscal autonomy, a move that may face opposition.


More than a decade after the 2015 Constitution created  seven provinces following a tumultuous struggle for state  restructuring, Nepal’s federalism remains an area of political  contest. Provinces are starved of fiscal autonomy, bypassed  by Kathmandu and now it is up to the triumphant RSP, a party  that once refused to even contest provincial elections, to  resuscitate it.

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