Here’s what the draft constitution says about powers and responsibilities of the provincial and local governments. The main sectors are laid out in a table format in appendices, referred to in the draft constitution as Schedules 4 to 7.
Paragraph 61. Distribution of State power: (1) The power of the federation shall be relating to the subjects mentioned in Schedule (4), and the exercise of such authority shall be done in accordance with this Constitution and the federal law.
(2) The power of the province shall be relating to the subjects mentioned in Schedule (5), and the exercise of such authority shall be done in accordance with this Constitution and the federal law.
(3) The concurrent/shared power of the federation and the province shall be relating to the subjects mentioned in Schedule (6), and the exercise of such authority shall be done in accordance with this constitution and the laws made by the federal parliament and provincial assembly.
(4) The laws to be enacted by the provincial assembly as provided for in sub-clause (3), shall have to be done in a way not to contradict the laws made by the federal parliament.
(5) The laws made by the provincial assembly according to sub-clause (3) shall be unacceptable to extent it contradicts the laws made by the federal parliament.
(6) The power of the local level entity shall be relating to the subjects mentioned in Schedule 7, and the exercise of such authority shall be done according to this Constitution and laws made by the village assembly and municipal assembly.
Paragraph 63. Use of fiscal power: (1) The federal, provincial and the local entities shall enact law, make annual budget, make necessary decisions, formulate policies and planning, and implement them in regard to the subjects related to the fiscal power mentioned in their respective lost of powers.
(2) The federation may make basic laws regarding necessary policies and criteria related to the subjects included in the list of concurrent/shared power and in other areas of fiscal authority, which may also be implemented in provinces.
(3) The federation, province and the local level entity shall make budgets of their respective levels, and the budget shall be presented in accordance with the federal law.
(4) The federation, province and the local level entity shall have to make arrangements for equitable distribution of the benefits from the development of natural resources. A certain portion of such benefit, royalty, services or objects, shall have to be distributed in areas affected by projects and to the local communities as provided for by law.
(5) When the federal, provincial and local level entity utilize natural resources, they shall have to give priority to local communities to make certain percentage of investment if they wish to do that in view of the nature and percentage in the investment.
(6) The government of Nepal shall have the right to seek foreign aid and loan. The economic stability of the country as a whole shall have to be maintained in doing so.
(7) The management of budget deficit of the federation, province and the local level entity and the arrangements regarding fiscal discipline shall be in accordance with federal law.
Paragraph 243. Provision related to Provincial Public Service Commission:
(1) There shall be a Provincial Public Service Commission in every Province.
(2) The constitution, functions, duties and powers of the Provincial Public Service Commission shall be determined as provided for in the Provincial law.
In fact, there will also be a provincial election commission (paragraph 244) – and certain additional powers and responsibilities can be found, going through the draft constitution – but the above cover the main parts of it.
