Form of State and Local Self Governance

ARTICLE 141. Progressive Restructuring of the State:
(1) Inclusive, democratic and progressive restructuring of the state shall be made to bring about an end of the discrimination based on class, caste, language, sex, culture, religion and region by eliminating the centralized and unitary form of the state.
(2) A High Level Commission shall be constituted to recommend  for the restructuring of the State in accordance with clause (1) above. The composition, function, duty, power and terms of service of such Commission shall be as determined by the Government of Nepal.
(3) Final decision of restructuring of the State shall be as determined by the Constituent Assembly.

ARTICLE 142. Provision for Local Self Governance:  
(1) Arrangements shall be made to set up local self governance bodies to ensure the people's exercise of their sovereignty by creating congenial atmosphere and thereby ensuring maximum peoples' participation in the country's governance, and also by providing services to the people at the local level and for the institutional development of democracy, based on the principle of decentralization and devolution of power.
(2) Interim local bodies at the District, Municipality and Village level shall be constituted through the understanding of all consenting parties to the agreement reached on the 22nd day of Kartik 2063 BS (November 7, 2006) between Nepali Congress, Nepal Communist Party (UML), Nepali Congress (Democratic), Jana Morcha Nepal, Nepal Sadhbhavana party (Anandidevi), Nepal Majdur Kishan party and United Left Front along with the Nepal Communist Party (Maoist).
(3) The organizational structure, its forms and geographical area as well as the formation process of the local self governance bodies shall be as provided for in the law.

ARTICLE 143. Mobilization and Management of Revenue:  
(1) Responsibilities and distribution and mobilization of resources shall be shared between the government of Nepal and the local self governance bodies as provided for in the law to strengthen them for local development and to make responsible to the local bodies themselves on identification, formulation and execution of local level programmes, by maintaining equality with a balanced and judicious distribution of the outcomes form the mobilization of resources and means, and allotment as well as the development thereof.
(2) Mobilization and distribution of the revenue under clause (1) above should be aimed at overall development of the socially and economically backward classes and communities with the ambit of balanced and equitable development of the nation.