Operationalizing green governance and environmental SDGs through local planning and budgeting in federal Nepal: Evidence from Palpa district

Local governments are increasingly responsible for translating environment-related Sustainable Development Goals (SDGs) into practical actions, yet evidence remains limited on whether national commitments materially shape local plans, budgets, and implementation in federal Nepal. This study aims to assess how green governance and environmental SDGs 6, 11, 13, and 15 are operationalized through planning and budgeting in four local governments of Palpa District. A qualitative-dominant mixed-methods case study combines national and local policy and planning documents, five fiscal years of budget and expenditure data, 31 key informant interviews, and six focus group discussions. Results show that all periodic plans reference the SDGs, but measurable environmental targets and indicators remain weak. Environmental SDG-related expenditure accounts for approximately 6.0% to 18.2% of total expenditure across cases and years, with allocations concentrated on SDG 6 and SDG 11, while SDG 13 and especially SDG 15 receive smaller and more fragmented funding. Intergovernmental fiscal rules, limited technical capacity, political incentives for visible projects, and unequal participation help explain the gap between policy commitments and budget choices. The study concludes that stronger environmental budget tagging, performance-linked grants, measurable indicators, and local technical capacity are required to convert SDG references into sustained environmental outcomes.