The Constitution of Nepal defines ‘federation as the apex unit of the federal structure’.  The Federal level is the collective structure of various entities exercising state power. Federal level means the collective structure of local and state units within the national geographical boundaries and the central organizational political structure that guarantees national interest, unity and security. The jurisdiction of the federal level resides all over Nepal and addresses the needs of the provincial and local level as well. Federation includes 753 local units, seven provincial units and one federal unit in Nepal’s political system. The jurisdiction of the federal unit is set out in Schedules 5 (exclusive), 7 (concurrent with Province) and 9 (concurrent with Province and Local level) of the Constitution. In addition, it is the authority of exercise the residual power is vested on the federation Nepal's constitution has given the role of leadership, coordination and co-operation to the federal level. The federation is supposed to develop capacity of the province and local level, implement national standards, re-distribute resources, uphold national integrity, social unity, protection of fundamental rights and international relations. The federal level exercises executive rights in the name of the Government of Nepal.

Powers of Federal Level

Schedule-5 (Exclusive Power)

(Relating to clause (1) of Article 57, and Article 109) of The Constitution of Nepal, 2015

1. Relating to defense and military
   1. Protection of national unity and territorial integrity
   2. Relating to national security
2. War and defense
3. Arms and ammunitions factories and production thereof
4. Central Police, Armed Police Force, national intelligence and investigation, peace, security
5. Central planning, central bank, finance policies, monetary and banking, monetary policies, foreign grants, aid and loans
6. Foreign and diplomatic affairs, international relations and United Nations related matters
7. International treaties or agreements, extradition, mutual legal assistance and international borders, international boundary rivers
8. Telecommunications, allocation of radio frequency, radio, television and postal matters
9. Customs, excise-duty, value-added tax, corporate income tax, individual income tax, remuneration tax, passport fee, visa fee, tourism fee, service charge and fee, penalty
10. Federal civil service, judicial service and other government services
11. Policies relating to conservation and multiple uses of water resources
12. Inland and inter-State electricity transmission lines
13. Central statistics (national and international standards and quality)
14. Central level large electricity, irrigation and other projects
15. Central universities, central level academies, universities standards and regulation, central libraries
16. Health policies, health services, health standards, quality and monitoring, national or specialized service providing hospitals, traditional treatment services and communicable disease control
17. Federal Parliament, Federal Executive, Local Level related affairs, special structure
18. International trade, exchange, port, quarantine
19. Civil aviation, international airports
20. National transportation policies, management of railways and national highways
21. Laws relating to the Supreme Court, High Courts, District Courts and administration of justice
22. Citizenship, passport, visa, immigration
23. Atomic energy, air space and astronomy
24. Intellectual property (including patents, designs, trademarks and copyrights)
25. Measurement
26. Mines excavation
27. National and international environment management, national parks, wildlife reserves and wetlands, national forest policies, carbon services
28. Insurance policies, securities, cooperatives regulation
29. Land use policies, human settlement development policies, tourism policies, environment adaptation
30. Criminal and civil laws making
31. Security printing
32. Social security and poverty alleviation
33. Constitutional Bodies, commissions of national importance
34. Sites of archaeological importance and ancient monuments
35. Any matter not enumerated in the Lists of Federal Powers, State Powers and Local Level Powers or in the Concurrent List and any matter not specified in this Constitution and in the Federal laws

Powers of Federal Level and Provincial Level

Schedule-7 (Concurrent Powers of Federation and Province)

(Relating to clause (3) of Articles 57, Article 109, clause (4) of Article 162, and Article 197) of The Constitution of Nepal, 2015

1. Civil and criminal procedure, evidence and oaths (legal recognition, public acts and  records, and judicial proceedings)
2. Supply, distribution, price control, quality and monitoring of essential goods and services
3. Preventive detention for reasons connected with the security of the country, prison and detention management, and maintenance of peace and order
4. Transfer of accused persons, detainees and prisoners from one State to another State
5. Laws relating to family affairs (marriage, transfer of property, divorce, persons on the verge of extinction, orphan, adoption, succession and joint family)
6. Acquisition, requisitioning of property and creation of right in property
7. Contracts, cooperatives, partnership and agency related matters
8. Matters relating to bankruptcy and insolvency
9. Drugs and pesticides
10. Planning, family planning and population management
11. Social security and employment, trade unions, settlement of industrial disputes, and labour rights and disputes related matters
12. Legal profession, auditing, engineering, medicines, Ayurvedic medicines, veterinary, Amchi and other professions
13. State boundary river, waterways, environment protection, biological diversity
14. Matters related to means of communication
15. Industries and mines and physical infrastructures
16. Casino, lottery
17. Early preparedness for, rescue, relief and rehabilitation from, natural and manmade calamities
18. Tourism, water supply and sanitation
19. Motion pictures, cinema halls and sports
20. Insurance business operation and management
21. Poverty alleviation and industrialization
22. Scientific research, science and technology and human resources development
23. Utilization of forests, mountains, forest conservation areas and waters stretching in inter-State form
24. Land policies and laws relating thereto
25. Employment and unemployment aid

Powers of Federal, Province and Local Level

Schedule 9 (Concurrent Power)

(Relating to clause (5) of Article 57, Article 109, clause (4) of Article 162, Article 197, clause (2) of Article 214, clause (2) of Article 221, and clause (1) of Article 226)

List of Concurrent Powers of Federation, State and Local Level

1. Cooperatives
2. Education, health and newspapers
3. Health
4. Agriculture
5. Services such as electricity, water supply, irrigation
6. Service  fee,  charge,  penalty and royalty from  natural  resources,
7. Forests, wildlife, birds, water uses, environment, ecology and bio-diversity
8. Mines and minerals
9. Disaster management
10. Social security and poverty alleviation
11. Personal events, births, deaths, marriages and statistics
12. Archaeology,  ancient monuments and museums
13. Landless squatters management
14. Royalty from natural resources
15. Motor vehicle permits