6 C. Nepal's federalism (the exam paragraph)

1. Three tiers of government — federal, 7 provinces, 753 local levels (Art. 56) — an unusual three-tier federation (most federations have two).2. Exclusive and concurrent lists: Schedule 5 (federal), 6 (provincial), 7 (federal–provincial concurrent), 8 (local), 9 (all-three concurrent). Residuary power rests with the federation (Art. 58); Art. 60 governs the distribution of revenue sources.3. Strong local tier: constitutionally protected local governments with their own executives, assemblies, and even judicial committees (Art. 217) — Nepal's answer to centuries of centre- heavy rule.4. One judiciary, one citizenship: the federation divides powers, not the legal order — courts are integrated under the Supreme Court (Art. 128).5. Fiscal federalism: revenue sharing and equalisation transfers (National Natural Resources and Fiscal Commission; Art. 60-area and finance provisions) — the daily struggle of Nepali federalism.6. Why Nepal chose federation: the failures of centralisation (exclusion of Madhes, Janajati, and remote regions), the 2006 peace process, and identity-based demands — federalism as inclusion machinery.