Foundations

Structure of State and Distribution of State Power

The federal architecture and distribution of powers across Nepal.

Sections5

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Article 60. Distribution of Sources of Revenue

(1)The Federation, Province and Local Level may impose taxes on matters falling within their respective competence and collect revenue from these sources. Provided that provisions relating to the imposition of taxes and collection of revenue on matters enumerated in the Concurrent List and on matters that are not contained in the List of any level shall be as determined by the Government of Nepal.
(2)The Government of Nepal shall make provisions for the equitable distribution of the collected revenue to the Federation, Province and Local Level.
(3)The amount of fiscal transfer receivable by Province and Local Level shall be as recommended by the National Natural Resources and Fiscal Commission.
(4)The Government of Nepal shall, on the basis of the need of expenditure and revenue capacity, distribute fiscal equalization grants to Province and Local

Level.

(5)Each Province shall, in accordance with the provincial law, distribute fiscal equalization grants out of the grants received from the Government of Nepal and www.lawcommission.gov.np revenues collected from its own sources, on the basis of the need of expenditure and revenue capacity of its subordinate Local Level.
(6)Provisions relating to distribution of conditional grants, complementary grants or special grants for other purposes to be provided by the Government of Nepal from the Federal Consolidated Fund shall be as provided for in the federal law.
(7)While distributing revenues between the Federal, Provincial and Local

Levels, it shall be made in a balanced and transparent manner.

(8)In making a federal Act on the distribution of revenues, regard shall be had to the matters of national policies; national requirements; autonomy of the Province and Local Levels; services to be rendered by the Province and Local Level to the people and financial powers granted to them; capacity to collect revenues; potentiality and use of revenues; assistance to be made in development and construction; reduction of regional imbalances; poverty and inequality; end of deprivation; and assistance to be made in the performance of contingent works and fulfilment of temporary needs. www.lawcommission.gov.np

Article 61. President

(1)There shall be a President of Nepal.
(2)The President shall be the Head of State of Nepal. He or she shall perform his or her functions in accordance with this Constitution and federal law.
(3)The President shall promote national unity of Nepal.
(4)The main duty of the President shall be to abide by and protect the

Constitution.

Article 62. Election of President

(1)The President shall be elected by an electoral college consisting of the members of the Federal Parliament and members of the Provincial Assemblies. The voting weightage of the members of the Federal Parliament and of the Provincial Assemblies shall vary as provided for in the federal law.
(2)Notwithstanding anything contained in clause (1), nothing shall be deemed to bar the formation of an electoral college for the purpose of election to the President by the sole reason that election to Provincial Assembly has not been held in any

Province.

Electoral College referred to in clause (1) shall be elected as the President.

(4)In case none of the candidates secures a majority pursuant to clause (3), there shall be the voting between the two candidates who have secured the highest number of votes, and a candidate who secures more than fifty percent of the total votes in such voting shall be elected as the President.
(5)In case none of the candidates secures more than fifty percent of the total votes even in the voting under clause (4), re-voting shall be held. A candidate who secures a majority of the total valid votes cast in such voting shall be elected as the

President.

(6)In case a person who holds a political office to be fulfilled by way of election, nomination or appointment is elected as the President under this Article, such office shall, ipso facto, fall vacant. www.lawcommission.gov.np
(7)Election to the President and other matters related thereto shall be as provided for in the federal law.

Article 63. Term of Office of President

(1)The term of office of the President shall be five years from the date on which he or she is elected.
(2)The President whose term of office under clause (1) has expired shall continue to discharge the functions under this Constitution until another elected

President assumes his or her office.

Article 64. Qualification for President

(1)A person who has the following qualifications shall be eligible to become the President:-
(a)One who is eligible to become a member of the Federal Parliament;
(b)On who has completed the age of at least forty-five years; and
(c)One who is not disqualified by any law.
(2)Notwithstanding anything contained in clause (1), a person who has already been elected twice as the President shall not be eligible to be a candidate in the election to the President.