Local resource mobilisation in selected paurashavas of Bangladesh - prospects and potential

Abstract

Pourashavas in Bangladesh are faced with increasing fiuancial problems. Lack of revenue constraint~ the urban governments to undertake development works of badly needed infrastructure and utility services' and maintain the existing ones at satisfactory level. Strengthening of financial position of these governments is necessary to improve urban living conditions and reduce pressur!"s on the national budget. The present study is aimed at exploring the possibility of mobilising additional local resources from the Pourashavas. Four Pourashavas! "ere sampled out for in-depth study. The research' came out 1"ith results that indicate that there is scope for greater resource mobilisation from the urban areas of Bangladesh. The Pourashavas can generate much more resource from land based taxes by correcting valuation. of property and timely collections. ,Also, there lies scope for increased resources from bysine.ss and acti vity based taxes and through maximisation of income from own property by putting those in their best pos6ible uses. Government grant can also be used to help generate local resources if a portion of it is disbursed on the basis of revenue collection performances. (iii) The major problems which hinder larger.resource mobilisation are, poor assessment and collecti0!1 of holding tax, under valuation of property during transfer, inelasticity of revenue from business taxes, lack of training of employees" poor administration, and incomplete record-keeping.