Assessment of Own Source Revenues in STF Municipalities

The study focused on four municipalities: Ghorahi Sub-Metropolitan City, Bheemdatta Municipality, Dipayal-Silgadhi Municipality, and Dangisharan Rural Municipality. The assessment aimed to evaluate the revenue collection performance of these municipalities and identify areas for improvement. The study found that the municipalities have a significant potential for generating own source revenues, but their actual collection performance is low. The municipalities have a range of tax and non-tax revenues, including vehicle tax, house and land registration fee, advertisement tax, and property tax. However, the collection rates for these revenues are low, and the municipalities face challenges in implementing effective revenue collection systems. The study identified several factors contributing to the low revenue collection performance, including inadequate infrastructure, lack of skilled personnel, and limited capacity for revenue administration. The study also found that the municipalities have a high dependence on external funding, which can create a culture of dependency and undermine their ability to generate own source revenues. The assessment recommended that the municipalities develop a revenue improvement action plan to increase their own source revenues. The plan should focus on improving revenue collection systems, enhancing capacity for revenue administration, and promoting a culture of transparency and accountability. The study also recommended that the provinces and municipalities establish a revenue advisory committee to provide technical support and guidance to the municipalities in improving their revenue collection performance. The study found that the municipalities have a range of revenue collection systems, including manual and computerized systems. However, the systems are often inadequate, and the municipalities face challenges in maintaining accurate and reliable revenue data. The study recommended that the municipalities invest in modernizing their revenue collection systems and establishing a robust data management system to improve revenue collection performance. The overall conclusion of the study is that the municipalities have a significant potential for generating own source revenues, but their actual collection performance is low due to inadequate infrastructure, lack of skilled personnel, and limited capacity for revenue administration. The study recommended that the municipalities develop a revenue improvement action plan to increase their own source revenues and establish a revenue advisory committee to provide technical support and guidance.