Three years have passed since Nepal’s 2022 local level elections. With three annual budgets already presented and only two remaining, the countdown for elected representatives has begun. Many local chairs are in their second and final term, as the Constitution bars a third. Having already served eight years, this period is crucial for leaving a meaningful legacy and showcasing effective governance.

Recently, I joined an interaction in Hetauda with chairs and vice-chairs from 74 rural municipalities in Bagmati Province. The session centred on 22 exclusive powers of local governments, as enshrined in the Constitution and elaborated in the Local Government Operation Act, 2017. Disappointingly, many leaders—even those in their second term—have yet to fully exercise these powers. Some were even unaware of local governance’s core objectives, signalling a pressing need for awareness, capacity-building and focused implementation.

While the Constitution’s preamble sets the tone for Nepal’s federal vision, the Local Government Operation Act provides the functional blueprint. It emphasises accessible services, citizen participation, transparency, accountability and equitable resource distribution. Local governments are the democratic foundational pillars that empower federalism. Their role also includes enhancing intergovernmental coordination and implementing legislative, executive and judicial functions at the local level.

The local government’s authority ranges from education, health and infrastructure to justice and public order. It is their responsibility to, for example, activate municipal police to enforce local laws, manage public events, protect assets and address issues like stray animals or human-wildlife conflict. Such steps can strengthen local responsiveness and legitimacy.

Many citizens are still suffering from cooperative-related issues due to weak oversight. Local governments need to actively register, monitor and enforce policies to ensure transparency and prevent fraud in regulating cooperatives. They should prioritise education and capacity-building, especially for cooperatives led by marginalised groups, and promote initiatives that generate local employment and production.

On the financial front, these governments should develop robust tax policies, accurately estimate revenues and expenditures and manage consolidated funds effectively. They need to expand the tax base, particularly through improved property taxation and implement performance-based budgeting. Rewarding compliant taxpayers can further strengthen fiscal accountability.

When it comes to service delivery, local governments should establish effective institutional structures, recruit and deploy qualified personnel and coordinate with provincial service commissions. They are expected to address citizen grievances, uphold transparency, tackle corruption and promote digital governance. Managing local data systems—including data on employment, migration and vital events—helps in evidence-based policymaking.

On the development front, local governments are expected to lead urban planning and housing initiatives, approve building permits according to the National Building Code and oversee infrastructure development. They should promote safe settlements, transparent project selection and labour banks to boost local employment. Monitoring and classifying projects that ensure sustainability and long-term impact are equally important.

In education, they should draft and enforce laws related to basic and secondary education, appoint and evaluate teachers and manage school infrastructure. Managing exams up to grade eight, monitoring learning outcomes and operating scholarship programmes are crucial. They should actively engage communities in school management and lead campaigns on literacy and health-related school policies like junk food bans.

Health and sanitation are core local responsibilities. Local governments must manage health posts, regulate smaller health facilities and develop health infrastructure. They should expand health insurance, ensure emergency transportation and run health programmes to improve community well-being.

In trade and market regulation, local governments should formulate market policies, ensure fair pricing, maintain quality control and support local entrepreneurship. They need to manage cold storage and warehouses, collect trade data and promote branding and marketing of local products.

Likewise, infrastructure development is another major responsibility. They must manage rural and urban road networks, bridges, irrigation systems and landslide controls, while ensuring coordination of disaster risk reduction strategies. Sustainable planning and infrastructure maintenance are essential.

Their duty is to effectively operate village and municipal assemblies, develop sectoral policies, approve budgets and coordinate joint committees. They are responsible for guiding executive bodies, formulating laws on exclusive matters and maintaining accurate demographic and socio-economic records using modern ICT systems.

In land management, they should conduct surveys, mapping and ownership registration, while ensuring fair and transparent land acquisition processes for public purposes. Agriculture and livestock development are foundational for rural economies. Local governments should demarcate agricultural zones, ensure a timely supply of inputs, promote organic practices, register farmers and enforce health and feed standards in livestock production. Similarly, in agricultural extension services, they should regulate inputs such as seeds and fertilisers, support cooperatives, and promote sustainable farming through training, research and outreach.

Social security delivery requires local leadership. They must issue identity cards, update records, operate shelters and provide rehabilitation support for senior citizens, persons with disabilities and other vulnerable groups. And to promote employment, local governments should collect labour data, support foreign employment initiatives and operate employment centres.

Local governments should regulate water distribution and management fees and facilitate small-scale hydropower projects (up to 10 MW). Promoting alternative and renewable energy sources is crucial to meet local needs and address climate concerns.

Additionally, disaster management is a vital local function. Local governments need to develop emergency preparedness plans, map high-risk areas, support relocations and coordinate emergency responses. Environmental conservation demands urgent attention. Local governments should protect watersheds, regulate mining, conserve wildlife and preserve soil health.

Finally, local governments are the custodians of rich cultural diversity. They should preserve local languages, protect heritage sites, support traditional festivals and document endangered arts and craftsl ensuring the continuity of cultural identity for future generations.

Local governments are empowered to lead governance, development and service delivery at the grassroots. However, these powers remain underutilised, revealing a gap between constitutional intent and actual practice. Local representatives must fully internalise and implement their mandates, backed by strong legal understanding, institutional ownership and visible results for the people.

To enable this, federal and provincial governments, political parties, civil society and development partners must collaborate to provide legal clarity, technical assistance and capacity-building support. The Provincial and Local Governance Support Programme (PLGSP) and similar initiatives must lead in strengthening local governance.

With authority spanning key sectors like education, health, infrastructure and disaster management, empowering local governments is urgent. Only when they function as vibrant, capable and accountable bodies can federalism truly thrive and inclusive democracy take root across Nepal. Local leaders must act urgently to fully realise their constitutional mandates and deliver results that build strong, accountable and inclusive local governance.