The report presents the first comprehensive, system-wide baseline of the country's federal governance system nearly a decade after the adoption of the 2015 Constitution. Commissioned by the Ministry of Land Management, Co-operatives, Federal Affairs and General Administration with technical assistance from UNDP through the Provincial and Local Governance Strengthening Programme (PLGSP), the report provides an evidence-based assessment of how federalism is functioning across the federal, provincial and local levels and establishes a reference point for tracking progress over time.

The report serves as a practical tool for policymakers, government institutions and development partners to identify priorities, guide reforms and monitor the country's federal transition. As the first in a planned series, it establishes the baseline against which follow-up assessments in 2027 and 2029 will measure progress in institutional performance, policy coherence and citizen experience of federalism. It also reflects UNDP Nepal’s continued support to nationally led efforts to strengthen intergovernmental relations, accountable institutions, inclusive governance and effective public service delivery.