The provinces have to set up many institutions to deliver basic services properly, and they have to start from scratch

Now that local elections are complete, local governments will finally be established in Nepal after a long gap. Initially, the Local Level Restructuring Commission (LLRC) proposed that Nepal be divided into 719 municipalities.

Balancing population and geography will be the biggest challenge in ensuring proportionate representation

The federal government has shown it is determined not to let go of the purse strings

The standards that have been set for restructuring local bodies are not scientific

Huge horizontal disparities in revenue collection pose a challenge to development

The many and varied complexities of restructuring local bodies should be understood

Political leaders’ main concern is about their constituencies, which leads to a disproportionate distribution of budget

A clear division of responsibilities among different levels of government is essential

Restructuring local bodies has become the central issue on the local governance front

Allocation of seats in India’s Lower House is proof that only increasing the number of constituencies will not ensure development

Province 3 would fare the best while Province 4, 6 and 7 might not be economically viable

States Four, Six and Seven would not be economically viable even if the revenue they generated were used solely within their boundaries.