Since the promulgation of the 2072 BS Constitution, Nepal adopted a federal structure, dividing the country into seven provinces. This system was introduced with the aim of decentralizing power, ensuring regional development, and fostering inclusivity. However, nearly a decade into its implementation, the provincial system has largely failed to deliver on its promises, leading to widespread dissatisfaction and calls for reform. Nepal, with a population of around 30 million and a land area of 147,516 square kilometers, is relatively small compared to other federal nations. The complexities of a provincial system are better suited for larger, more diverse countries with significant regional disparities. But in Nepal’s case, the provincial system has been proved nothing more than a burden to the country.

The introduction of provincial governments has added an extra layer of bureaucracy, creating redundancies in governance. Instead of streamlining decision-making, it has led to confusion and inefficiencies, with overlapping responsibilities between federal, provincial, and local bodies.Establishing and maintaining provincial governments has placed a significant financial strain on the national budget. The costs associated with running provincial assemblies, paying salaries to ministers and staff, and building infrastructure have diverted funds from essential sectors like health, education, and infrastructure development.The unclear delineation of powers between federal and provincial governments has led to frequent conflicts. Provinces often find themselves at odds with the central government, leading to political instability and a lack of coherent policy implementation.Rather than improving access to public services, the provincial system has often complicated it. Citizens face delays and inconsistencies in service delivery due to the added bureaucratic layers and coordination challenges among different levels of government.The federal system has exacerbated political fragmentation, with regional parties gaining prominence and contributing to frequent government changes and policy inconsistencies. This has hindered long-term planning and sustainable development.

Before federalism, Nepal operated under a centralized system that, despite its flaws, managed to maintain national unity and governance without the administrative complexities now faced. Nepal’s compact geography and population can be effectively managed through a centralized system complemented by empowered local governments. The distances and population sizes do not warrant a separate provincial tier. Strengthening local municipalities and rural municipalities (gaunpalikas) can ensure grassroots development without the need for an intermediate provincial level, leading to more direct and efficient governance.

To address the shortcomings of the provincial system and promote sustainable political and economic development, Nepal should consider eliminating the provincial level of government which can reduce administrative costs . This would allow for a more efficient allocation of resources directly to local governments, which are closer to the people and better understand their needs. Empowering local governments with greater autonomy, resources, and decision-making power can enhance service delivery and foster regional development. Local bodies should have the authority to plan and implement development projects tailored to their specific needs.The central government should focus on creating a more transparent, accountable, and efficient governance structure. Simplifying administrative procedures and reducing corruption will be key to restoring public trust and ensuring effective governance.

The provincial system in Nepal has proven to be an inefficient and costly experiment. Given the country’s size and administrative needs, a more streamlined governance model focusing on strong local governments and efficient central administration offers a more sustainable path forward. By adopting these reforms, Nepal can foster political stability, drive development, and ensure a better future for its citizens.