Mott MacDonald | Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth
Federalisation. In 2015, Nepal shifted from a unitary system to a 3-tiered government that includes a federal government, seven provincial governments, 753 village and municipal levels governments, and 6,743 hamlets. The goal is to decentralize power and create opportunities for economic and political growth by overcoming various internal and external challenges. The country is federated into seven provinces. The Gross Domestic Product GDP at producer’s price of Nepal in 2019 20 amounted to Nepalese Rupee (Rs) 3,767.04 billion (MoF 2020). The three focus provinces contributed 32% of the GDP. Province 2 and Lumbini had a 14% share each while Karnali contributed 4%, which was the lowest among the seven provinces. Bagmati is the most developed province relative to the other provinces.
Figure 10. Percentage contribution of each province to GDP, 2019/20
February 2022
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