Improvement in the management of municipal finance in Nepal

Abstract

The study of Improvement in the Management of Municipal Finance in Nepal is designed to study the present financial management practices, identify the revenue potentialities, study the problems and find out the improvement techniques of the municipal financial management in Nepal. Financial management comprises both revenue decisions regarding OSR and external source revenue and expenditures decisions. The objectives of the study are to find out possible improvement techniques in the management of municipal finance and explore the potential revenue sources in municipalities. newlineThe research design of the study is analytical cum descriptive. Both stratified random and judgmental methods of sampling are applied for the selection of municipalities and respondents. Taxpayers and municipal policymaking advisors are the respondents of the study. Both qualitative and quantitative data are collected and analyzed, and primary and secondary sources of data are used in this study. Primary data are collected through self administered and open ended questionnaire survey, focus group discussion, and personal interviews with key informants. In total, 500 well answered questionnaires (400 of taxpayers and 100 of municipal policy making advisors) are used in analysis as primary source of data. Likewise, 3 FGDs in each sample municipalities and 5 personal interviews with the executive officers (each sample municipalities), high level personnel of Ministry of Federal Affairs and Local Development, and chairman of Municipality Association of Nepal are taken for qualitative information. Both primary and secondary data are collected from the sample municipalities and other sources concurrently within the period of January to July, 2014. Secondary data are taken from the sample municipalities, concerned District Development Committees, Ministry of Federal Affairs and Local Development, Local Bodies Fiscal Commission, Town Development Fund, Urban Development through Local Efforts (Udle/GTZ), and other published and unpublished reports of m