Local governments got real power in 2017. Here is how the money has followed

Before federalism, a district office spent what the centre sent. Now an elected municipal council decides, within formulas set by a constitutional commission, and reports back. [1]

The formulas weigh population, area, poverty and cost of delivery, so a sparse mountain municipality receives more per head than a Terai city.

Capacity, not cash

The recurring finding of reviews is that money arrives faster than the ability to spend it well: engineers, accountants and procurement officers are thin on the ground outside the big cities. [2]

Where it works, it works visibly: a road graded before the monsoon, a health post that keeps its hours. Where it does not, the same transfer sits unspent until the fiscal year ends.