Abstract
After the restoration of the democracy in Nepal, the demand for spending up decentralization process has been gained ground. As a result of increasingly assertive role of stakeholders, the enactment of local self-governance Act (LSGA), 1999 in line with 9th plan, objective had been achieved providing the base for further promotion of decentralization framework in the country. Municipal financing is new concept in Nepal. Municipal financing indicates the study of various sources of revenue (both internal and external) and their collection, allocation, mobilization and utilization of those resource in such a manner that ultimate municipal goal can be achieved through it. For sustainable development effort conducted by local government to realized revenue and evaluation such performance was done through field surveys and on the basis of existing available data and reports. Simple tabular presentation percentage tools is used to analyzed data and found PSMC is not success to collect sufficient tax revenue as its possibilities. Janapriya Journal of Interdisciplinary Studies Vol. 2, No.1 (December 2013), page: 51-60
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