Tribhuvan University
Faculty of Management
Office of the Dean
Official Model Question Paper / Dean's Office Blueprint
Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.
Group A
Brief Answer Questions. Attempt ALL questions.
[5 × 2 = 10]- [2]
Mention two major administrative contributions of King Prithvi Narayan Shah during the territorial unification of Nepal.
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Answer:
- Divya Upadesh (Divine Counsel): Provided foundational geopolitical principles (describing Nepal as a ‘yam between two boulders’) and national economic policies advocating patronage of indigenous craft and restriction on foreign traders.
- Integration of Diverse Administrative Practices: Preserved local customary traditions and land tenure systems (e.g., Kipat, Jagir) to secure regional loyalty.
- [2]
What was the historical significance of the Treaty of Sugauli (1816) for Nepal’s borders?
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Answer: The 1816 Treaty of Sugauli concluded the Anglo-Nepalese War. Nepal ceded approximately one-third of its territory (including regions west of the Mahakali River like Kumaon and Garhwal, and territory east of the Mechi River like Sikkim), fixed the Mechi and Mahakali rivers as boundaries, and permitted a British Resident in Kathmandu.
- [2]
Define Federalism as enshrined in the Constitution of Nepal (2072).
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Answer: Under Article 56 of the Constitution of Nepal (2072), the federal democratic republic is structured into three autonomous yet coordinated tiers of government: Federation (Central), Provinces (7 provinces), and Local Levels (753 local bodies), operating under principles of cooperation, coexistence, and coordination.
- [2]
State the key objective of the Delhi Agreement (2007 BS / 1951 AD).
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Answer: The tripartite Delhi Agreement brokered between the Nepali Congress, King Tribhuvan, and the Rana regime ended 104 years of autocratic Rana rule, restored the monarch to power, established an interim coalition cabinet, and announced elections for a constituent assembly.
- [2]
What are the three core organs of the State under the separation of powers doctrine in Nepal?
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Answer:
- Legislature (Federal Parliament): House of Representatives and National Assembly.
- Executive (Federal Government): Prime Minister and Council of Ministers.
- Judiciary: Supreme Court, High Courts, and District Courts.
Group B
Descriptive Answer Questions. Attempt any THREE questions.
[3 × 10 = 30]- [10]
Critically examine the political causes, popular mobilization, and institutional outcomes of the People’s Movement II (Jana Andolan II - 2062/63 BS) in Nepal.
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Comprehensive Analysis of Jana Andolan II (2062/63 BS)
1. Political Background and Catalysts
- Royal Direct Rule: King Gyanendra’s dissolution of parliament and assumption of absolute executive power on Magh 19, 2061 BS suspended democratic liberties, censored media, and jailed political leaders.
- The 12-Point Understanding (New Delhi, 2062): Seven Political Parties (SPA) and the Communist Party of Nepal (Maoist) formed a historic alliance against direct monarchy, agreeing to end armed insurgency and embrace multiparty democracy.
2. Popular Mobilization (Chaitra 24 – Baisakh 11, 2063)
- An initial 4-day general strike turned into a 19-day nationwide mass movement.
- Massive street protests in Kathmandu and district headquarters mobilized millions of citizens across ethnic groups, civil servants, professional associations, students, and human rights bodies, defying curfews.
3. Institutional Outcomes
- Reinstatement of Parliament: On Baisakh 11, 2063, King Gyanendra reinstated the dissolved House of Representatives.
- Historic Proclamation of Jeth 4, 2063: Stripped royal privileges, declared Nepal a secular state, brought the Nepal Army under parliamentary control, and transformed Royal Nepal Army to Nepali Army.
- Comprehensive Peace Accord (CPA, 2063): Formally concluded the decade-long Maoist armed conflict and integrated Maoist fighters.
- Constituent Assembly Elections: Paved the way for the 2064 CA elections and the formal abolition of the 240-year-old monarchy on Jestha 15, 2065 BS, establishing Nepal as a Federal Democratic Republic.
- [10]
Analyze the geopolitical determinants of Nepal’s foreign policy. How does Nepal balance strategic relations between its two neighboring giants, India and China?
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Geopolitical Determinants and Strategic Balancing in Nepal’s Foreign Policy
1. Foundational Geopolitical Determinants
- Landlocked Geography: Surrounded on three sides by India and to the north by the Tibetan Autonomous Region of China across the Himalayan barrier.
- Non-Aligned Foreign Policy Doctrine: Guided by the UN Charter, Non-Aligned Movement (NAM), and Panchasheel (five principles of peaceful coexistence).
- Economic & Trade Realities: India provides primary maritime transit access via Kolkata/Haldia and Visakhapatnam ports and shares a 1,800-km open border with deep socio-cultural ties (Roti-Beti).
2. Strategic Relations with India
- Key Dimensions: Special friendship treaty of 1950, open border, currency peg, trade interdependence, cross-border energy trade, and recruitment of Gorkha soldiers.
- Challenges: Border disputes (Kalapani, Lipulekh, Susta), trade deficit, transit blockades (notably in 2015), and political sensitivities regarding domestic sovereignty.
3. Strategic Relations with China
- Key Dimensions: Respect for One-China policy, signing of the Transit Transport Agreement (2016) granting access to Chinese sea and dry ports, Belt and Road Initiative (BRI) infrastructure cooperation, cross-border optical fiber, and northern border checkpoint upgrades (Tatopani, Rasuwagadhi, Korala).
- Challenges: Tough Himalayan terrain, language/institutional differences, and geopolitical pushback from India and Western partners.
4. The Equidistance / Equi-proximity Balancing Strategy
Nepal maintains neutrality, avoids military alliances, seeks economic benefits from both nations without allowing its soil to be used against either neighbor, and strives to position itself as a dynamic transit bridge connecting South Asia with East Asia.
- [10]
Discuss the structure, features, and jurisdictional powers of local-level governments under the Constitution of Nepal (2072). Evaluate their role in decentralizing service delivery.
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Local Governments under the Constitution of Nepal (2072)
1. Structural Overview
- Nepal has 753 local level administrative units:
- 6 Metropolitan Cities (Mahanagarpalika)
- 11 Sub-Metropolitan Cities (Upa-Mahanagarpalika)
- 276 Municipalities (Nagarpalika)
- 460 Rural Municipalities (Gaunpalika)
- Each municipality consists of an Executive (Mayor/Chairperson, Deputy Mayor/Vice-Chairperson, Ward Chairs) and a Legislative body (Municipal/Rural Assembly).
2. Exclusive and Concurrent Powers (Schedule 8 & 9)
- Exclusive Powers (Schedule 8): Municipal police, management of local services, collection of local taxes (property tax, house rent tax, vehicle tax, land registration fees), basic and secondary education management, primary health care, local roads, agricultural extension, and vital event registration.
- Concurrent Powers (Schedule 9): Shared responsibilities with federal and provincial tiers regarding forest management, mines, disaster relief, and tourism development.
3. Evaluation of Decentralized Service Delivery
- Successes: Brought governance to citizens’ doorsteps; empowered historically marginalized groups (mandatory inclusion of Dalit women in ward committees); improved disaster response and localized infrastructure.
- Challenges: Severe human resource shortages, fiscal dependency on central fiscal equalization and conditional grants, overlapping bureaucratic jurisdictions, and fiduciary risk/corruption at local levels.
- Nepal has 753 local level administrative units:
- [10]
Trace the constitutional and democratic evolution of Nepal from the promulgation of the Government of Nepal Act 2004 BS to the Constitution of Nepal 2072 BS.
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Constitutional and Democratic Evolution of Nepal (2004 BS – 2072 BS)
Nepal has enacted seven successive constitutional frameworks over seven decades:
- Government of Nepal Act 2004 BS (1948 AD): First written constitution drafted by Rana PM Padma Shumsher; never implemented due to Rana factional opposition.
- Interim Government of Nepal Act 2007 BS (1951 AD): Introduced after the fall of the Ranas; established an interim constitutional monarchy and legal framework.
- Constitution of the Kingdom of Nepal 2015 BS (1959 AD): Established a Westminster-style parliamentary democracy; led to the first general elections won by Nepali Congress under B.P. Koirala. Dissolved by King Mahendra in 2017 BS.
- Constitution of Nepal 2019 BS (1962 AD): Established the party-less Panchayat system under absolute royal supremacy, criminalizing political parties for three decades.
- Constitution of the Kingdom of Nepal 2047 BS (1990 AD): Born out of Jana Andolan I; enshrined multiparty democracy, constitutional monarchy, fundamental human rights, and rule of law.
- Interim Constitution of Nepal 2063 BS (2007 AD): Drafted after Jana Andolan II and the peace accord; abolished the monarchy, established a secular interim republic, and instituted the Constituent Assembly.
- Constitution of Nepal 2072 BS (2015 AD): Promulgated by the democratically elected Constituent Assembly on Ashwin 3, 2072. Transformed Nepal into a Federal Democratic Republic with 3 tiers of government, secularism, independent judiciary, and proportional inclusion.
Group C
Comprehensive Answer / Case Analysis Question. Attempt ALL questions.
[1 × 20 = 20]- [20]
Case Study: Fiscal Federalism, Intergovernmental Coordination, and Private Enterprise Growth in Nepal
Following the implementation of federalism under the 2072 Constitution, Nepal completed two full cycles of periodic elections for local, provincial, and federal governments. In Province ‘Karnali’ and Province ‘Bagmati’, private sector enterprises operating logistics, agro-processing, and manufacturing units reported contradictory experiences:
- In Bagmati Province, manufacturing and logistics companies faced duplicate taxation: municipalities levied business entry, parking, and waste collection fees, while provincial authorities imposed separate vehicle and pollution surcharges, overlapping with federal corporate income and value-added taxes.
- In Karnali Province, local governments demonstrated strong willingness to attract private capital by offering local tax holidays, but investors faced acute infrastructure deficits (unpaved highway corridors, intermittent electrical grids, lack of testing laboratories), combined with civil service absenteeism and frequent bureaucratic turnover.
- The National Natural Resources and Fiscal Commission (NNRFC) reported that over 80% of municipal budgets across peripheral provinces depend entirely on federal fiscal equalization, revenue sharing, and conditional transfers, as internal revenue mobilization accounts for less than 10% of local expenditure.
Questions: a) Identify and evaluate the key structural conflicts in intergovernmental fiscal relations (tax duplication, revenue assignment) faced by private enterprises under Nepal’s federal structure. (6 Marks) b) Analyze why local governments in resource-scarce provinces struggle with internal revenue mobilization despite constitutional autonomy, and how this impacts local business development. (7 Marks) c) Propose a concrete policy and administrative framework to institutionalize effective intergovernmental coordination among Federal, Provincial, and Local tiers to foster an investor-friendly national economic climate. (7 Marks)
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Comprehensive Case Analysis: Fiscal Federalism and Business Growth in Nepal
a) Key Structural Conflicts in Intergovernmental Fiscal Relations
- Tax Jurisdiction Overlaps and Double Taxation:
- Under Schedules 5, 6, 7, 8, and 9 of the Constitution, taxing powers are divided. However, gray areas exist—especially regarding property registration fees, advertisement taxes, aggregate mining royalties, and vehicle taxes.
- Private freight and logistics operators are frequently stopped at multiple municipal checkpoints across provincial highways, subjected to local ‘scrap/entry taxes’ that violate constitutional provisions guaranteeing free domestic movement of goods and services across provincial borders (Article 236).
- Administrative Compliance Costs:
- Instead of a consolidated single-window tax system, corporate entities must register and file separate returns with the Inland Revenue Department (federal), Provincial Revenue Offices, and multiple Municipal Tax divisions, inflating compliance costs.
b) Causes of Low Internal Revenue Mobilization and Its Impact on Enterprise
- Narrow Local Tax Base:
- In peripheral provinces like Karnali, economic activity is predominantly subsistence agriculture and informal trade. Formal commercial assets and corporate turnovers suitable for municipal taxation are minuscule.
- Institutional Capacity Deficits:
- Local levels lack trained valuation officers, computerized cadastral data, and tax assessment software, leading to revenue leakages and arbitrary manual rent collection.
- Fiscal Dependency Syndrome:
- Unconditional federal fiscal equalization transfers inadvertently disincentivize municipalities from undertaking politically unpopular local tax collection efforts.
- Vicious Cycle for Private Enterprise:
- Low internal revenue leads to underfunded local infrastructure (roads, bridges, cold storage), discouraging private investment, which keeps the commercial tax base depressed.
c) Policy Framework for Seamless Intergovernmental Coordination
- Enforce Constitutional Freedom of Domestic Commerce (Article 236):
- The federal Ministry of Finance and Supreme Court must strictly prohibit unauthorized municipal road barricades, transit taxes, and export levies on domestic agricultural/industrial produce moving between local units.
- Unified Single-Window Digital Revenue Platform:
- Develop an integrated digital portal where businesses pay local, provincial, and federal dues in one transaction, automatically distributed according to NNRFC formulaic revenue-sharing ratios.
- Strengthen the Inter-Provincial Council and High-Level Intergovernmental Fiscal Council:
- Activate regular statutory meetings between federal ministries and provincial Chief Ministers to harmonize industrial standards, labor regulations, and environmental licensing across provinces.
- Incentive-Based Performance Grants by NNRFC:
- Structure fiscal equalization grants so that provinces and municipalities that attract private capital, formalize local enterprises, and improve contract enforcement receive bonus fiscal allocations.