Prologue (Federation, Province, and Local Level Act)

Federation, Province, and Local Level Act 2020 was enacted in Karthik 2020 B.S. to provide coordination and inter-government relations between the Federation, Province, and Local Levels. It consists of 35 Sections.

The Act has also brought into Operation National Coordination Council, Relevant Thematic Committees, Provincial Coordination Council, and District Coordination Council for properly maintaining inter-relations between the three levels.

It has provisioned that the Federation, Province, and Local Level must exercise State Powers based on Cooperation, Co-Existence, and Coordination to strengthen a Multiparty competitive Federal Democratic Republican System of Governance based on Pluralism.

Subject Matter of Inter-Relation and Coordination

The Inter-Relation and Coordination between the Federation, Province, and Local Levels of Nepal extend to the Following according to Section 3 of the Act:

(a) Fundamental matters of national interest,

(b) Preservation of national pride and unity,

(c) Compliance and implementation of the Directive Principles, Policies and Obligations of the State,

(d) Enforcement of Fundamental Rights,

(e) Contribution to respect and implementation of National Policies,

(f) Comprehensiveness and harmony of constitutional provisions,

(g) Building of a socialism-oriented economy based on democratic values and norms,

(h) Respect for the existence and functional autonomy of another level while exercising powers in matters of common interest and concern, subject to the Constitution,

(i) Equal treatment and security among Nepali citizens,

(j) Mutual coordination, consultation, cooperation and exchange of information in the enforcement of law, policy, and judicial or administrative decisions,

(k) Conservation of natural and physical resources,

(l) Sustainable management of natural, physical, and fiscal resources and rational distribution of benefits,

(m) Prevention of corruption and promotion of good governance,

(n) Additional Cooperation and Collaboration,

(o) Adoption of proportional, inclusive, and participatory governance system,

(p) Effectiveness of services to be delivered to the citizens,

(q) cooperation and coordination in the expansion of trade, transportation of goods and services,

(r) Other matters as provided for in the prevailing law and Constitution

Law and Policy Making

Section 4 has incorporated the matters to be considered while framing Law and Policy on the matters of their exclusive jurisdiction and Powers.

The Federation

(a) Not to encroach upon exclusive powers of Province and Local Level,

(b) To be appropriate to implement certain matters by Province and Local Level from the point of view of the cost, sustainability, or effectiveness of service delivery,

(c) To maintain the role of Federation, Province, and Local Level in the implementation of any matter avoiding duplication.

The Province

(a) Not to encroach upon the exclusive powers of Federation and Local Level,

(b) Not to become inconsistent with federal law,

(c) To be consistent with national policy or priorities and to be helpful in their implementation,

(d) To be appropriate to implement certain matters at the Local Level, from the point of view of cost, sustainability, or effectiveness of service delivery,

(e) To maintain the role of the Local Level as far as possible, avoiding duplication in implementation of any matter.

The Local Level

(a) Not to encroach upon the exclusive powers of Federation and Province,

(b) No to be inconsistent with federal and provincial laws,

(c) To be consistent with national policy or priorities and to be helpful in their implementation,

(d) To be consistent with provincial policy or priority and to be helpful in their implementation,

(e) Not to be duplication in implementation of any matters.

Federal Law Matters

About Section 7 of the Act, the Matters that are to be solely governed by Federal Law in Nepal are as follows:

(a) Matters included in the exclusive powers list of the Federation,

(b) Matters to be governed by the policy or standard to be framed by the Federation,

(c) Matters defining any act as a criminal offense and providing punishment therefor,

(d) Matters relating to the establishment of a specialized court, judicial body, or tribunal or alteration of the jurisdiction of such a court, judicial body, or tribunal, as the case may be,

(e) Matters concerning residuary powers.

Coordination and Consultation

Federation and Province

(a) While enacting law and formulating policies on matters of concurrent powers referred to Schedule-7 of the Constitution,

(b) While enacting laws and formulating policies on matters referred to in Schedule 6, at the request of two or more two provinces,

(c) While implementing large projects of national importance, interprovincial level projects or programs,

(d) While developing national plans and policies that are to be abided and implemented by the Province as well,

(e) While operating inter-province national roads, power transmission lines, and inter-provincial irrigation or operating projects of a similar nature,

(f) While concluding a treaty or an agreement on a matter that has fallen in the list of powers of the Province,

(g) Any other matter deemed appropriate by the Government of Nepal.

Federation and Local Level

(a) While formulating a national plan and policies that are to be abided by and implemented at the Local Level as well,

(b) Any other matter as deemed appropriate by the Government of Nepal.

Federation, Local Level, and Province

(a) In enacting laws and formulating policies on matters of concurrent powers referred to in Schedule 9 of the Constitution,

(b) On policy matters in the course of revenue sharing and the introduction of a new tax system,

(c) On sharing of natural resources and their benefits.

Others

The Government can consult with the Provincial Government on matters of Residuary Powers and enacting Laws concerned with Provincial Laws. The Province can coordinate and consult with the thematic ministry or Body to enact laws and formulate policies.

Further, the Local Level can consult with the Thematic Ministry of the Government of Nepal and the Thematic Ministry of the Provincial Government.

Moreover, the Province can coordinate and consult with the Local Levels while exercising concurrent powers of the Federation, Province, and Local Levels.

National Coordination Council

Chapter 4 Section 16 of the Act has established the National Coordination Council in Nepal to manage the coordination and mutual relations between the Federation, Province, and Local Levels of Nepal.

Members

(a) The Prime Minister – Serving as the Chairperson

(b) The Minister of Finance, Government of Nepal – A Member

(c) The Minister of Law, Justice, and Parliamentary Affairs, Government of Nepal – A Member

(d) The Minister of Home Affairs, Government of Nepal – A Member

(e) The Minister of Federal Affairs and General Administration, Government of Nepal – A Member

(f) Chief Ministers of Provincial Governments – Members

(g) The Leader of the opposition party in the House of Representatives or a designated member of the Federal Parliament – A Member

(h) Seven individuals, including at least three women, nominated by the Prime Minister based on the principle of inclusion.

Functions, Duties, and Powers of the Council

The Council is responsible for the following:

(a) Coordinating between the Federation, Province, and Local Levels in formulating laws and policies on concurrent powers.

(b) Coordinating on matters of national interest to be implemented at the Province and Local Levels.

(c) Resolving complexities related to the implementation of national plans, policies, and laws at the Province and Local Levels.

(d) Coordinating in the formulation of laws, policies, and strategies affecting inter-province and Local Levels.

(e) Coordinating for the implementation of large inter-province projects.

(f) Reviewing, analyzing, or causing the analysis of policies, laws, and plans formulated at the Federation, Province, and Local Levels during federalism implementation.

(g) Taking necessary actions to maintain service harmony at the Federation, Province, and Local Levels.

(h) Providing recommendations to the Government of Nepal, Provincial Government, and Local Levels regarding law formulation and implementation.

(i) Conducting discussions and coordination as necessary on matters forwarded for discussion by the Government of Nepal, Council of Ministers, thematic committees, and Provincial Coordination Council.

Thematic Committees

Thematic Committees can be established in Nepal for the coordination of the relevant ministries at the Federal and Provincial Levels to bear responsibilities and enhance plan execution and policy implementation. They shall consist of the Following

a. Relevant Minister of Government of Nepal as Chairperson

b. Relevant Minister of Pronvincial Governemnt as Memvers

c. A Mayor or Chairperson of Local Leval is appointed as a Member.

Functions, Duties, and Powers

(a) Consulting with the Province and Local Levels in the formulation of plans, policies, and laws related to their subject matter.

(b) Coordinating to maintain consistency, continuity, and quality in thematic plans, policies, and programs.

(c) Providing recommendations to the Council for the formulation of national policies related to their subject matter.

(d) Implementing or facilitating the implementation of the Council’s decisions and directives.

(e) Undertaking other activities as specified by the Council.

Provincial Coordination Council

Section 24 of the Federal, Province, and Local Level Act has provisioned for the Constitution of the Provincial Coordination Council in Each Province. It shall be established to oversee coordination situated across multiple Districts within a Province.

Members

(a) The Chief Minister – Serving as the Chairperson

(b) The Minister responsible for Financial Affairs of the Provincial Government – A Member

(c) The Minister responsible for Internal Affairs of the Provincial Government – A Member

(d) The Principal Secretary of the Provincial Government – A Member

(e) One representative from each district of the Province, chosen from among the Chairpersons or Deputy Chairpersons of Rural Municipalities, Mayors or Deputy Mayors of Municipalities, and Chiefs or Deputy Chiefs of the District Coordination Committee, designated by the Chief Minister based on the principle of inclusion, with at least one-third being female – Members

(f) The Secretary at the Chief Minister’s Office of the Province – Serving as the Secretary

Functions, Duties, and Powers

  1. Responsible for coordinating and maintaining interrelations between the province and local levels or among multiple local levels in development projects operated by the Provincial Government.
  2. Create Committees as needed to ensure coordination and interrelation
  3. Issues Guidelines to the Province or Local Level upon request
  4. Adhered to the Provincial Coordination Council Guidelines.

District Coordination Committee

The Act has also maintained the establishment of a District Coordination Committee for coordinating Development Projects conducted by the Federation or Province at the Local Level and other tasks as mandated by Existing Law.

Dispute Resolution

The Federation, Province, and Local Levels need to ensure their actions are conducted in a manner that minimizes the occurrence of disputes following their respective powers and functions.

If a political dispute arises among the three levels of Nepali Federalism, any party involved must formally notify the Secretariat of the Inter-Provincial Council within 15 Days of the dispute.

The Secretariat must inform the Council’s Chairperson and the Chairperson shall call a meeting and engage in discussions before deciding on the matter.

The Inter-Provincial Council can establish a sub-committee for further investigation of the Task and seek to resolve disputes through negotiations, discussions, consultations, and conciliation.

In severe cases of Constitutional Disputes, the Constitutional Bench has the jurisdiction over such cases while allowing concerned parties reasonable opportunities to engage in Alternative Dispute Resolution Mechanisms.

Epilogue

Federation, Province, and Local Level (Coordination and Inter-relation) Act 2020 was approved to strengthen Federalism in Nepal and improve the existing coordination and Cooperation amongst the three levels of Government of Nepal.

With 35 Sections, the act has established several bodies for swift interaction and dispute resolution amongst the Three Levels and provided relevant matters of Power and Jurisdiction to each of these Bodies.

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