In Article 57 of the Constitution of Nepal, there is a constitutional arrangement regarding the distribution of state power. According to which, the rights of the province shall be vested in the matters mentioned in schedule-6 of the constitution and the exercise of such rights shall be regulated according to the constitution and the laws of the province. In this way, the sovereign right to make laws related to the rights of the state is vested in the state assembly.

Likewise, the common rights of the Union and the provinces shall be vested in the matters mentioned in Schedule-7 and the exercise of such rights shall be regulated in accordance with the Constitution, federal laws and provincial laws. There is a constitutional provision that states can levy taxes on matters within their economic jurisdiction and collect revenue from those sources. There is a constitutional provision that federal laws can be made to be applicable throughout Nepal or only in a region of Nepal as needed, and provincial laws can be made as applicable throughout the province or only in a region of the province as needed. If two or more provinces request the Government of Nepal to enact a law on any of the matters mentioned in Schedule-6, the Federal Parliament may enact the necessary laws and such laws shall apply only to the respective provinces.

However, there is also a constitutional provision that the Federal Parliament can enact laws even on matters mentioned in Schedule-6 under the authority of the provinces and such laws shall remain in force until repealed by the related provincial assembly by making another law. 

There is also a constitutional arrangement regarding the interrelationship between the union and the state in law making. According to the provisions of Article 225, the Federal Parliament has enacted the Union, State and Local Level (Coordination and Interconnection) Act, 2077, as per the provisions of the Federal Parliament to enact necessary laws to maintain coordination between the Union, State and local levels. According to the provisions of this Act, the Provincial Council of Ministers, Village Executives and Municipal Executives can form and operate various government services according to the law as required to conduct their administration. In addition, there is a provision that when the province makes laws or policies regarding its single rights and common list, it should be in accordance with the constitution, federal laws, not encroaching on the single rights of the union and local level, national policy and priority and implementation cooperation, not having dual roles of implementation, and appropriate to be implemented from the local level in terms of cost and sustainability. 

Likewise, when the province makes laws or implements them, if there is a provision that states must comply with the conditions or standards according to the constitution or the association must make policies, it should be implemented or make laws under the existing policy and federal laws, and when the province implements laws on matters that fall under the common authority of the union and provinces, or when making laws on such matters, there is also a provision that they should be implemented or make laws in a manner that conforms to federal laws. It seems that in the absence of a federal law on a matter falling under the common authority of the Union and the state, the state can implement the matter or make a law. However, the subject regulated by the federal law, the subject of the sole right of the union, the subject according to the federal policy or standard, the subject of establishing and punishing criminal offenses, the subject of establishing and determining the jurisdiction of the specialized court, judicial body or judiciary, and the subject of residual rights seem to be regulated only by the federal law. 

However, administrative penalties or fines can be arranged in accordance with the law regarding operations or administration from the state or local level. There is also a legal provision regarding mutual assistance in law making and implementation. The Government of Nepal should assist in formulating laws, policies and plans for the rights and responsibilities of the provincial and local levels, if requested by the provincial or local levels. In the same way, there is a provision that the provincial government should assist in formulating the laws, policies and plans of the local level, if requested by the local level, the provincial government or the local level should provide the necessary support when implementing the laws, policies and plans made by the union, and the Nepal government should provide the necessary support when implementing the laws, policies and plans made by the provincial and local levels.

In the context of the above-mentioned constitutional and legal arrangements, various problems and challenges have been seen in the formulation and implementation of laws regarding single and common rights of provinces. Although laws have been made by the province regarding the single rights of the provinces, due to the ambiguity of the jurisdiction in the formulation of laws regarding the common rights of the Union and the provinces, there has been a situation in which legal complications have arisen in using the jurisdiction of quasi-judicial bodies in the provincial laws. For example, the issue of what kind of law the province should make regarding land and guthi management has become complicated. The rights related to police administration and security of peace are in the list of single rights of the province in Schedule-6 of the Constitution. For its implementation, the states have issued the State Police Act. But since the police service has not been transferred from the union to the states, these laws have not been implemented effectively.

There is a dual arrangement in the forest laws created by the union and the state and the implementation of the implied legal provisions has created complexity. In terms of creating laws related to the common rights of the Union and the provinces, the Union has not been able to give proper guidance to the provinces and it has not become a practice to cooperate with each other in the formulation and implementation of laws. According to the constitution, the need for the law to be made by the province has not been effectively implemented.

It has been seen that there is a need to create more laws of a similar nature in which the provinces have a common understanding on some other issues such as irrigation and water resources, land management, Guthi management, mining exploration and management, land acquisition. Different laws have been made between states on matters of the same nature. According to the current federal law, the decision regarding the use of national forest and other government land to be used by provincial national priority projects and provincial national pride projects should be made by the government of Nepal. The Nepal government and the provincial government have double standards in the collection, use and storage of river sediments. Double standards have been seen between the union and the state regarding industry registration and regulation. There is duplication between the Union and the provinces in matters such as taxes and service charges and duties and there is no legal system for collecting taxes, service charges and duties in an integrated manner through the one-door system. Provinces have unclear policies and laws regarding tax collection and revenue collection. Complexity has been seen in land, land management and recording. In federalism, when the federal law that directs the overall civil administration has not been made, there is confusion regarding the moral development, facilities, and transfer of employees hired by the provinces. Therefore, if requested by the province to formulate laws, policies and plans for the rights and work responsibilities of the province, it seems that the government of Nepal should cooperate and when the province implements the law on the subject under the common authority of the union and the province or makes a law on such subject, it should be implemented or make a law in such a way that it is compatible with the federal law. Similarly, provinces should study and research and formulate laws after identifying needs, state policy on law making should be issued, the style of drafting laws should be discouraged, laws should be drafted after extensive consultation between concerned agencies and individuals or groups, regulations should be drafted at the same time when drafting laws, and instructions should be issued by related agencies to draft some special laws.  There should be a legislative test of the implementation of the

laws. The federal law should be amended so that the province can make decisions regarding the use of national forests and other government land used by provincial national priority projects and provincial national pride projects. There should be a clear provision in the federal law regarding the exercise of the jurisdiction to decide as a quasi-judicial body in the state law. In addition, since the Nepal government and the state government have double standards in the collection, use and storage of river products, unified standards should be created in cooperation and coordination between the federation and the state. There is a situation where there is a need for a legal arrangement between the government of Nepal and the state government to collect taxes, service charges and duties through an integrated and one-way system.