Municipal Revenue Enhancement Project

Direct Target Group: Selected local governments with political commitment and willingness to engage in promoting a systemic approach to strengthening fiscal autonomy, accountability and inclusive services. In addition, federal government, provincial governments and development partners will be engaged through policy dialogue and cross-learning platforms.  

Indirect Target Group: Citizens of Koshi and Bagmati Provinces, especially women and disadvantaged groups, who will benefit from improved municipal revenue and services.

OUTCOME 1: Selected local governments’ own source revenue collection and tax  compliance is fair, efficient, effective and transparent.

OUTCOME 2: Selected local governments‘ public service delivery systems and procedures are managed effectively and inclusively, efficiently and transparently.

OUTCOME 3: All levels of government share learnings on own source revenue management, draft better informed and inclusive public finance management policies and scale up own source revenue programs. 

Risultati principali attesi:  

Output 1.1 Local governments and ward staff have improved capacity to strategically plan and manage own source revenue in a gender responsive, inclusive and equitable manner.

Output 1.2 Local governments‘ own source revenue policies and systems are optimized and compliant with local government, provincial, national public finance management guidelines.

Output 1.3 Citizens, including women and disadvantaged groups, in targeted local governments have increased awareness and incentives for tax compliance .

Output 2.1 Local governments have increased efficiency, transparency and gender responsiveness in the service delivery lifecycle, with focus on planning, budgeting and procurement.

Output 2.2 Local governments‘ accountability and inclusive civic engagement practices in service delivery processes are enhanced and compliant with Local Government Operations Act.

Output 3.1 National public finance management legislation, policies and programs for sustainable and inclusive own source revenue practice are informed by shared learning from municipal, provincial and national levels.

Output 3.2 Local governments establish and enhance intermunicipal horizontal knowledge sharing and learning on own source revenue and service delivery.

Risultati fasi precedenti:  

Assessment: 

Fiscal autonomy derived from own source revenue generation offers local governments a level of fiscal stability and ultimately functional legitimacy. With higher own source revenue, the local governments are in a better position to offer services to people in an inclusive and accountable way, prioritize spending and demonstrate results for strategic priorities over multiple years, including gender-responsive budgeting.