2005 Photo

Does Federalism Lead To A Bigger Government?

The Articles of Confederation, ratified in 1781. This was the format for the United States government until the Constitution. (Photo credit: Wikipedia)

Some anti federalist forces are arguing that Nepal is too poor a country to be able to afford federalism. To the current government expenditures in Kathmandu they add the expenditures of all future state governments and they throw their hands into the air.

That is not how federalism works. Federalism is a more efficient form of government. Which means government expenses will actually go down. How so? Many of the functions of the unitary government in Kathmandu will be handed over to the states. That will lead to the elimination of some ministries and the downsizing of others.

Federalism done right is supposed to lead to an overall smaller bureaucracy.

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