The system of government in which a country is divided into several states is called a federal system. In federal system of government there are two governments: central government and state government. The interim constitution of Nepal 2063 has also accepted this concept to implement in Nepal through its second ammendment.
In Nepal's context importance of federal system are:
- This increases the competition between the states which promotes development.
- The means and resources of states are properly utilized.
- The states do not have to wait for the center for development activities. This makes development faster.
- The sates becomes self-reliant.
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