ABSTRACT
The chapter explores the evolving political, legal, and fiscal framework of subnational governments (SNGs) in Nepal as part of the ongoing and still unfinished transition to a federal system, based on the Constitution of Nepal 2015. As the Constitution and subsequent legislation have devolved significant service delivery responsibilities to the subnational level, especially the local government level, these governments assume a major role in achieving the national Sustainable Development Goals (SDG) agenda. While the formal enabling environment for localizing SDGs is regarded as robust, implementation issues will remain for some time as part of the teething problems of transitioning to the federal and multi-level governance system.
