The new constitution, signed in 2015, mandated that local elections must be followed by polls at provincial and national level no later than January 2018.
Krishna Bahadur Mahara of CPN-Maoist Centre was appointed deputy prime minister and foreign minister.
The government has also laid emphasis on different tasks including making post-reconstruction works effective, making people's oriented service efficient and smooth, strengthening peace and security and supply management and completing the remaining task of the peace process.
Nepal's parliament elected a veteran politician on Tuesday as the country's 10th prime minister in 11 years.
He said, "Called Shri Sher Bahadur Deuba to congratulate him on being elected the Prime Minister of Nepal".
This is Deuba's fourth stint as the Prime Minister of Nepal.
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In a meeting held in the chamber of Speaker Onsari Gharti last evening to resolve deadlock, top leaders of Nepali Congress, CPN (Maoist Centre) and CPN (UML) agreed to resume parliament proceedings. CPN-MC leader Janardan Sharma was appointed home minister and Prabhu Sah was appointed as a minister without portfolio.
Mr Deuba, who has been elected to parliament from far-western Dadeldhura district, has promised to amend the new constitution to fulfil the demands of the Madhesi people. His political career has gone through several ups and downs through this period. He was removed by the then King Gyanendra Shah in 2005 over failure to hold polls and bring Maoist rebels to a negotiating table, the agency report says.
But he had to restore him in 2004 after weeks of street protests.
By becoming Prime Minister again, Deuba equalled the record of his former NC colleague Girija Prasad Koirala.
But the new party merged into the parent party after Girija Prasad Koirala and Mr Deuba reached an agreement in 2007.