Revenue Mobilisation Performance of Union Parishad in Bangladesh: Is It Convergence of Central-Local Relations?

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.

Democratisation of local government planning in Bangladesh

“…A satisfactory number 4 of people participated in the local planning process. Like Ullah and Pongquan (2011), this study found that the new system of UP planning has been facilitating democratisation. People's access to these processes -WSs and OBMsis creating a pathway for mass participation in decision-making at the local level.…”