AbstractNepal introduced federalism in 2015 with three levels of government: federal, provincial, and local. The preamble of the constitution mentions that the country's new federal system of government shall address three key perennial political and policy problems: (i) centralized governance structure, (ii) geographically disbalancing developmental approach, and (iii) social injustice leveraged by caste‐based social structures and unequal economic opportunities. This research is an attempt to understand the first 5‐year tenure of provincial governments (2017–2022) regarding their efforts to attain the aforesaid constitutional aims. Findings indicate that provincial governments operated in ambiguity during their first electoral tenure, resulting in no tangible outcomes. Instead, they generated rather pessimistic public impressions about provincial government structure in Nepal. The research contributes to broadening the insights on intermediary government mechanisms across federal countries, with empirical evidence from Nepal.
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