PSC Exam Question - List out the Significance of Local Self-Governance Act, 2055 of Nepal?

Introduction - Local Self-Governance, 2055
Principles and Policies of Local Self-governance: 
His Majesty's Government shall, in accordance with the guidelines set forth in the Constitution of the Kingdom of Nepal, 1990, on decentralization, pursue the following principles and policies for the development of local self governance system:

• Devolution of such powers, responsibilities, and means and resources as are required to make the Local Bodies capable and efficient in local self-governance.
• Building and development of institutional mechanism and functional structure in Local Bodies capable of considering for local people and bearing responsibilities.
• Devolution of powers to collect and mobilize such means and resources as are required to discharge the functions, duties, responsibility and accountability conferred to the Local Bodies.
• Having the Local Bodies oriented towards establishing the civil society based on democratic process, transparent practice, public accountability, and people's participation, in carrying out the functions devolved on them.
• For the purpose of developing local leadership, arrangement of effective mechanism to make the Local Body accountable to the people in its own areas.
• Encouraging the private sector to participate in local self-governance in the task of providing basic services for sustainable development.