Abstract:
Existing standing of local government structure follows the recommendation of the
Local Government Commission of 1996, which consists of a four-tier system but,
before the commencement of the commission report, local government has gone
through a process of chronological change. Among the tiers, the Union Parishad is
still a permanent catalyst of the local government.
A unit of local government must possess substantive autonomy particularly as
reflected in the right to prepare a budget and raise the revenue necessary to meet it.
But, the Union Parishad has been facing enormous problem regarding its fund. Day
by day, UP is lessening its power to collect tax from its internal resources that makes
weak governing system.
This research focuses on Union Parishad: how it works, its sources of funding and
expenditures, exploring possible new sources of funding and how it can be used for
strengthening UP as a means of good governance. In the research, it have been tried
to search the reasons for deficit of fund, problem of fund collection, discrepancy
between income and expenditure, priority program needed in the area and finally
some recommendations have been provided considering social, political and
economic point of view.
