Internship Report on “Managing Finance for Public Sector

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					         Country Case Study on
Intergovernmental Relations (Bangladesh)

                Swapan Kumar Sarkar
        Director General (Additional Secretary)
          Local Government Division
        Ministry of Local Government,
       Rural Development & Cooperatives
               Ministry of
           Local Government,
    Rural Development & Cooperatives

Local Government       Rural Development
     Division           & Cooperatives

Mission of Local Government Division

  Improving the standard of living of the
 people by strengthening local government
   systems and institutions and implement
     activities for social, economic and
        infrastructure development.
      Wings of Local Government Division
                   Local Government Division

 Centrally Run Organizations                Local Government Institutes
  Local Government Engineering Deptt.       City Corporations (9)
  Department of Public Health Engineering   Municipalities (309+5)
 Water Supply and Sanitation Authority      Zila Parishads (61+3)
(4)                                         Upazila Parishad (481+4)
  National Institute of Local Government    Union Parishad (4501+33)

Prime Responsibilities and centrally run organization
 Ø   Development of both urban & rural safe Water
     supply, Sanitation and Sewerage System - DPHE.
 Ø   Development, maintenance and management of
     Upazila Roads, Union Roads and Village Roads
     including bridges and culverts as allocated by the
     Government from time to time - LGED .
 Ø   Development, maintenance and management of
     Growth Centers and other markets connected to
     Upazila, Union and Village Roads - LGED.
 Ø   Development, maintenance and management of
     Small Scale Water Resources schemes up to the limit
     as determined by the Government - LGED.

Prime Responsibilities and centrally run organization

 Ø   Women Empowerment through employment-
     LGED and centrally run projects.
 Ø   Poverty reduction - LGED and centrally run
 Ø   Reduce arsenic contamination - DPHE
 Ø   Establish disaster shelter centers - LGED
 Ø   Ensure one stop service for people through
     Union/Upazila Parishad Complex - LGED
 Ø   Income generating activities for distressed
     families – LGED and centrally run projects
  Medium-Term Strategic Objectives and LGIs
1. Strengthening governance at the local level
2. Developing of rural roads and other rural infrastructure
3. Prioritizing participation of women in development
4. Providing safe water supply and sanitation facilities to all
5. Improving the living standard of slum dwellers and their
6. Ensuring compulsory registrations of births
7. Adopting appropriate expansion and equitable distribution
   policy of small scale water resources for the poor
8. Ensuring planned urbanization

Provisions of LGIs in the Constitution of Bangladesh
  Article- 59. Local Government
  (1) Local Government in every administrative unit of
    the Republic shall be entrusted to bodies, composed
    of persons elected in accordance with law.
  (2) Everybody such as is referred to in clause (1) shall,
    subject to this Constitution and any other law,
    perform within the appropriate administrative unit
    such functions as shall be prescribed by Act of
    Parliament, which may include functions relating to-
    (a) Administration and the work of public officers;
     (b) the maintenance of public order; the preparation
    and implementation of plans relating to public
    services and economic development.
Provisions of LGIs in the Constitution of Bangladesh

  Article-60. Powers of local government bodies

  For the purpose of giving full effect to the
    provisions of article 59 Parliament shall, by
    law, confer powers on the local government
    bodies referred to in that article, including
    power to impose taxes for local purposes, to
    prepare their budgets and to maintain funds.

              LGD & LGI’s

City                                       Union
Corp.                                     Parishad

   Munici-                            Upazila
    pality           Zila             Parishad

DLG & DDLG play the linking role in the field level   10
          Fiscal decentralization and LGI Autonomy

               Governmen                       Local 
  LGI Tier      t Sources                     Sources                               Autonomy      Transparency
                    Block       Special       Property  Licenses & 
                   Grants       Grants          Tax        duties        Others                      
                      Yes,                                              LT fees, 
    City                      Yes, against                                            Act       Greater 
                   amount                       Yes        Yes            own 
Corporations                    project                                           guaranteed    extent
                    varies                                             resources
                      Yes,                                              LT fees, 
Municipalities                Not always        Yes        Yes            own                  sufficient
                    varies                                             resources
                              Yes, against                                Own 
Zila Parishad Not regular                       No         No                     Almost Zero   Limited
                                project                                Resource
  Upazila                                                             Limited Own     MPs 
                 amount         Limited         Nil         Nil                                     medium
  Parishad                                                             Resource    intervene
                   Yes,                                                 LT fees, 
                 amount         Limited       Limited    Limited        Limited      Sufficient    Sufficient
                increases                                              resources

Supporting the LGIs: Fiscal Transfer
                  Development    Project
     LGI                                              Total
                   Assistance    Support
 Zila Parishad        3050                              3050

                      3900        250 (UZGP)            4150
                       10        5880 (LGSP)            5890
 Municipalities                 (excludes project
                      3140                              3140
      City                      (excludes project
                      1350                              1350
  Corporations                     allocations)


                                          Figures are in million BDT
       Better learning and best practices (1)
n   Disclosure of Information through courtyard
    meeting and open budget meeting at UP level,
    scheme related information at the scheme sight and
    total receipt and expense related information and the
    UP notice board, fiscal transfer through national
n   Transparency in budgetary allocation and expenses
    at the Ward level and at open budget meeting;
n   Accountability through financial, assurance and
    social audits;
       Better learning and best practices (2)
n    Regular preparation and maintenance of Accounts
    at the Union level;
n   People’s participation to prepare the UP planning
    (bottom up planning), scheme selection (ward level)
    and budget finalization through open budget meting;
n   People’s participation during the implementation of
    scheme and in the supervision;
n   Better service delivery to the people through UISC
    at each of the UP level;
n   Better grievance redressing at ward, UP, open
    budget and BGCC meetings;                        14
       Better learning and best practices (3)
n   Look into environmental, social side of the schemes
    at the Union Parishad Planning Committee and
    Block Grant Coordination Committee meeting;
n   Awareness raising through Union Facilitators Team
    for better and effective people’s participation;
n   Educate elected officials and help them practice
    through a process of capacity building and helping
    through Facilitators;
n   Encourage best practices through prize and
    punishment (limited).
            Best practices and its impact
n    People’s ownership is established;
n   Better quality of small works is ensured (WB report-
n   Rivalry and grouping at ward level is reduced;
n   People received better services from the UP level;
n   Level of people’s satisfaction has been increased;
n   Central government’s control is decreased but
    monitoring in increased through reports and returns,
    regular BGCC meeting and activation of monitoring
     Steps for Upazila and Municipalities
n   Overall governance at the municipality level is in
    practice through better accounting and better
    people’s participation. It’s an UGIIP endeavour in
    35 municipalities;
n   Steps have been taken to improve the overall
    governance and ensure elected officials power at the
    Upazila level as per provisions of the Constitution;
n   Innovative approach is under 14 Upazila in 7
    Divisions to improve the overall working
    environment and inter-personal reltions.
Supporting the LGIs: Gender empowerment
              Provisions in the Acts
 n   Seats (one third) are reserved for women in all
     the LGIs run by elected officials.
 n   One third of the standing committees are
     headed by women.
 n   One reserved seat of Vice Chairman at the
     Upazila level.
 n   One women member is given cheque signing
Supporting the LGIs: Gender empowerment
           Provisions in the Projects
n   30% budget is utilized by the women members
n   Women members are eligible to be the head of
    30% budgets (LGSP-LIC).
n   Women development forum is formed to look
    after gender interest. (LGSP).
n   Justice for marginalized people especially
    women at Village Court. (AVCP)
  Supporting the LGIs: Elections
LGIs arrange regular election for its LGIs.
 Union Parishad: Last countrywide election was held
 during May-July 2011.
 Municipality: Last countrywide election was held
 during January 2011.
 Upazila Parishad: Last countrywide election was
 held during January 2009.
 Zila Parishad: Administrators appointed on
 December 20, 2011.
 City Corporations: Running by elected officials
 elected during different times (except two new) 20
Queries & Comments


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