Interrelations between Federation, State and Local level
How the three tiers of government interact and coordinate.
Article 228. No Tax to be levied or Loan to be raised
- (1)No tax shall be levied and collected and no loan raised in the Local Level except in accordance with law.
- (2)The Local Level may levy tax by making a law on matters falling within its jurisdiction without prejudice to national economic policies, carriage of goods and services, capital and labour market, and the neighbouring Province or Local Level.
Article 229. Local Consolidated Fund
- (1)There shall be a Local Consolidate Fund in each Rural Municipality and Municipality under the Local Level. All revenues received by the Rural Municipality or Municipality, any amounts of grants received from the Government of Nepal and the Provincial Government, all loans raised by the Rural Municipality and Municipality, and amounts received from other sources shall be credited to such Fund.
- (2)Matters relating to expenditures from the Local Consolidated Fund referred to in clause (1) shall be as provided for in a Local law.
Article 230. Estimates of Revenues and Expenditures of Rural Municipality and Municipality
(1) The Rural Municipal Executive and the Municipal Executive shall, subject to this Constitution, lay an estimate of revenues and expenditures of every fiscal year before, and have the estimate adopted by, the Rural Municipal Assembly and the Municipal Assembly, respectively, as provided for in the Local law.
- (2)In case, in laying an estimate of revenues and expenditures pursuant to clause (1), the Rural Municipal Executive or Municipal Executive is required to make a deficit budget, it shall also propose the sources to meet the deficit as provided for in the federal law and provincial law. www.lawcommission.gov.np Interrelations between Federation, Province and Local Level
Article 231. Legislative Interrelations between Federation and Provinces
- (1)A federal law may be made to be applicable to the whole of, or, if required, to any part of, the territory of Nepal.
- (2)A provincial law may be made to be applicable to the whole of, or as required, to any part of the territory of the Province.
- (3)In case two or more Provinces make a request to the Government of Nepal to make laws on any matter enumerated in Schedule-6, the Federal Parliament may make necessary laws. Such laws shall be applicable to the concerned Provinces only.
Article 232. Relations between Federation, Province and Local Level
- (1)The relations between the Federation, Provinces and Local Levels shall be based on the principles of cooperation, co-existence and coordination.
- (2)The Government of Nepal may, in accordance with this Constitution and federal law, give necessary directions to any Provincial Council of Ministers on matters of national importance and on matters to be coordinated among the Provinces, and it shall be the duty of the concerned Provincial Council of Ministers to abide by such directions.
- (3)In case any type of act that may seriously undermine the sovereignty, territorial integrity, nationality or independence of Nepal is carried out in any
Province, the President may, as required, warn such Provincial Council of Ministers, suspend the Provincial Council of Ministers and the Provincial Assembly for a period not exceeding six months or dissolve them.
- (4)Any suspension or dissolution of any Provincial Council of Ministers and the Provincial Assembly shall be approved by a majority of the total number of the then members of the Federal Parliament within thirty-five days.
- (5)In case dissolution made pursuant to clause (3) is approved by the Federal
Parliament, election to the Provincial Assembly shall be held in such Province within six months. www.lawcommission.gov.np Provided that such suspension or dissolution shall, ipso facto be ceased to operate in case the Federal Parliament does not approve it.
- (6)The Federal Rule shall apply to such Province during the period of such suspension in case the suspension made pursuant to clause (3) is approved pursuant to clause (4) and until the election to the Provincial Assembly is held pursuant to clause (5).
- (7)During the continuance of the Federal Rule, the Federal Parliament may make laws with respect to any matter enumerated in the List contained in Schedule-6.
Such laws shall continue to apply until repealed by another laws made by the concerned Provincial Assembly.
- (8)The Government of Nepal may, directly or through the Provincial
Government, render necessary assistance and give necessary directives to any Rural Municipal Executive or Municipal Executive in accordance with this Constitution and the federal law. It shall be the duty of the Rural Municipal Executive or Municipal Executive to abide by such directives.
Article 233. Relations between Provinces
- (1)One Province shall render assistance in the execution of legal provisions or judicial and administrative decisions or orders of another Province.
- (2)A Province may exchange information and consult with another Province on matters of common concern and interest, coordinate each other on their activities and legislations and extend mutual assistance.
- (3)A Province shall, in accordance with its provincial law, provide equal security, treatment and facility to residents of another Province.
Article 234. Inter-Province Council
- (1)There shall be an Inter-Province Council as follows to settle political disputes arising out between the Federation and a Province and between Provinces:-
- (a)Prime Minister - Chairperson
- (b)Minister for Home Affairs of the Government of Nepal - Member
- (c)Minister for Finance of the Government of Nepal - Member