Answer:
1. Large horizontal disparities. Most of the tax bases in Nepal are concentrated in and around Kathmandu and the borders between Nepal and India. Moreover, there is poor connectivity between other provinces and Kathmandu. The challenge is to incentivize equitable economic growth and provision of public and merit service
2.Nepal is practicing federalism in the midst of fear, mistrust, and dubious mindsets of political elites without a clear vision of its future
3.Third, there are operational issues with regard to federalism, mainly including issues such as, a) the overall direction of the new federal structure and its relevance to the devolution of power and ensuring the effective delivery of services, b) the communication and coordination between the three tiers of government .
Explanation:
