One of the key objectives of the Project to Prepare the Public Administration for State Reforms (PREPARE)—executed by the Ministry of General Administration in cooperation with UNDP—has been to support Nepal’s transition to an inclusive federal structure and further the capacity building of government institutions and officials. This study, in analyzing the current roles and responsibilities of the government, offers a strategy for a more accountable assignment of public functions across different tiers of public administration in line with the new constitution, based on an appropriate methodology, international practice, the particular context of the country and consultations with major stakeholders.