Budget governance for disaster risk reduction and climate change adaptation under Nepal's new federal system

This brief provides an overview of findings and recommendations for policy makers to improve investments for disaster risk reduction (DRR) and climate change adaptation (CCA) at the local government level in Nepal so that greater investments can be made to enhance communities’ resilience.

Nepal recently implemented a new federalized governance structure – a significant shift from district level administration to a devolved structure of seven provinces and 753 municipalities covering urban and rural areas. Municipalities now have the authority and responsibility to plan and execute service delivery that was historically done at the district and national levels, including for issues on disaster risk reduction/management and climate change.

Mercy Corps conducted research in seven municipalities of Sudurpashchim province to understand how local governments are investing in DRR and CCA in the new structure. Key informant interviews, focus group discussions, secondary document review, and municipality budget analysis was conducted to understand governance processes and allocations for DRR and CCA with a special focus on flood resilience.