Abstract
Despite several local revenue sources, Union Parishads (Councils) in Bangladesh are yet to perform optimal local revenue mobilisation. This paper evaluates Unions revenue trend and performance, budget and planning practices, effect of central grants on local revenue in the backdrop of central government recent initiative for Unions capacity building. Analysis includes three representative Unions, in a comparative perspective, and uses secondary and primary data (from Parishad functionaries, local citizen, government officials and national experts). Findings show that open budget discussion, discretionary and performance grants have positive impact on local revenue collection while this study raises question about sustainability of the revenue augmentation due to disparity of deconcentrated allocations system and feeble local democratic governance. Study recommends making adjustments in local revenue shares, increase discretionary grants, and validation of local participatory governance. This study has implications for local revenue mobilisation through convergence of central-local policy and strategy, specially for developing countries having similar local socio-economic and revenue source footings.
Highlights
Annual Development Programme (ADP) allocation is appropriated as 90% for general and 10% for operational performance and general allocation is to appropriate based on population 50%, physical area 30% and backwardness 20%. (Note 1) ADP and own funded projects of Upazila and Zila parishad are allocate to UPs, based on population, area and backwardness. (Note 2) Recently, government has replaced Local Government (Union Parishad) Ordinance, 1983 by the Local Government (Union Parishad) Act, 2009 with the aim of curtailment of external political interventions and providing more administrative and fiscal authority including citizens’ participation and right to know information about UP affairs
Immediate after Independence in 1971, system of basic democracy was abolished and in the article 9, 59 and 60 of Bangladesh constitution articulated about the local government formation, functions and revenue powers where union council remain as the lowest tier rural local government
3.1 Resources mobilisation trend and performance. It is observed and understood from UP functionaries and local people that recent policy of central government have induced UP representatives and local people in bringing about positive change in UPs tax collection
Summary
Based on the record of Ministry of Local Government, Cooperative and Rural Development, three UPs are purposively selected from three different regions, districts and Upazila (sub-district) of the country. An average annual revenue performance criterion is used to classify three cases, based on five years (2002/03 to 2006/07) actual revenue collection while compared and validated it with published revenue performance data of other UPs. (Note 3) three UP cases are defined as High Revenue (More than Tk.1000 000) Performing (HRP), Moderate Revenue (not less than Tk.500 000) Performing (MRP) and Low Revenue (low Tk.250 000 to nearly Tk 500 000) Performing (LRP) UPs. An average annual revenue performance criterion is used to classify three cases, based on five years (2002/03 to 2006/07) actual revenue collection while compared and validated it with published revenue performance data of other UPs. Both secondary and primary data are used in the study.
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