Financing governmental decentralization : the case of Bangladesh

This book analyzes local government fiscal systems in Bangladesh, a country which, by reason of its scarce natural resources, rapid population growth, and the economic dominance of the rural sector, is representative of other low-income nations. The book focuses on methods by which local governments are financed and how they may be strengthened by new or improved financial instruments under current decentralization policies; it also highlights administrative and political constraints faced at both the central and local levels. After an overview of governmental decentralization in Bangladesh, individual chapters are devoted to: (1) the local government structure within which decentralization operates; (2) intergovernmental grants and ways in which they can be improved; (3-5) the structure, administration, and equity aspects of three forms of property-related taxation that are likely to provide the basis for further strengthening of the resource mobilization capabilities of local governments - the immovable property transfer tax, the land development tax, and the holdings tax; (6-7) two other sources of local revenue - business taxes/fees and local contributions and voluntarism. A final chapter summarizes the study"s findings, noting both the benefits and costs of fiscal reform.