The form of federalism practiced in Nepal is based on the concept of the state being closer to the citizens. The federal/central government has always been and remains distant from the citizens. The provincial and local governments, on the other hand, are working closer to the citizens. Local governments are becoming more popular because they immediately sense the needs of the citizens and carry out development work with the participation of the citizens.

During the COVID pandemic that became widespread in 2076/77, local governments were the ones that provided guardianship to citizens. Even now, local governments are sufficient to carry out many administrative tasks and minor development works. However, despite having a relatively strong and stable government, questions have been raised about the functioning of local governments. In the past, it was said that there was a 'Singha Durbar in the villages', now many are accusing 'corruption in the villages'. If this situation continues, popular local governments will remain at the center of criticism. Therefore, it is necessary for the people's representatives leading the local government and the parties they are affiliated with to guide their work in accordance with the law and financial discipline.

The local governments formed as envisioned by the 2072 constitution started working after the elections held in 2074. In nearly 9 years of practice, local governments have established some specific norms. First, this government is useful for development work that can be completed even with a small budget. Second, it is closer because there is direct concern and monitoring of the citizens in the process of forming and operating the government.

Third, being directly elected, easy in the decision-making process, and having relatively strong financial mobilization capabilities, becoming a local people's representative is becoming an attractive choice for political activists. Fourth, it has provided leadership development capabilities. To some extent, Kathmandu Metropolitan City Mayor Balendra Shah has been able to present himself as the Prime Minister without completing even one term and has been approved by the people. Leaders who have led local governments as well as provincial governments may also reach the leadership of the respective parties and the country in the coming days.

As much as there are positive aspects of local and provincial governments, there are also criticisms. At many local levels, from the mayor to the ward members, people are involved in corruption cases. Many cases have been registered against people's representatives on issues such as budget embezzlement, irregular payments, irregularities in the procurement process, grant distribution, consultancy services, and bribery. Of the total complaints registered with the Commission for the Investigation of Abuse of Authority in the fiscal year 2081/82, the highest number, 53.84 percent (19,933), is against local governments.

Similarly, 12.47 percent of complaints have been filed against the provincial government. There is also a lot of embezzlement. In the fiscal year 2080/81 alone, Rs. 4.2 billion was embezzled in 1,165 offices under the provincial government and Rs. 25.32 billion in 753 local levels. There has also been an increase in the transfer of the allocated budget to another heading at the last minute (amount transfer) and the act of keeping it for any purpose after a lump sum budget without a specific heading (abanda). Experts say that this has become the main means of corruption at the provincial and local levels.

The federalism in practice in Nepal is the result of a long political struggle. Therefore, its decisions and actions should reflect the people's struggle and aspirations. Many local governments have also done excellent work. Many decisions of the provincial government also appear to be people-oriented. However, anger is also arising among the people due to the irregularities and opacity that are taking place at the same time.

If this situation continues, the possibility of increasing public anger, growing disillusionment with the governance system itself, and even accidents cannot be ruled out. People's representatives and political parties must play a role in strengthening this governance system and fulfilling the hopes and aspirations of the people through it. An additional role is expected, especially from political parties that have struggled for a federal democratic republic. The work of local and provincial governments is also an opportunity for any person or party to expand their influence and popularity among the people.