State of Resource Mobilisation in South Asian Countries

In this chapter, resource mobilisation practices, challenges, and opportunities regarding local governance in three South Asian nations, viz, India, Sri Lanka, and Nepal, have been reviewed with actionable insights for Bangladesh. Every country provides us with unique experiences based on its history, politics, and institutions. India's Panchayati Raj Institutions (PRIs) have made considerable progress in resource mobilisation through constitutional provisions and the imposition of taxes, levies, fees, and grants. However, we are yet to overcome the dependency of state governments and socio-economic inequalities. Sri Lanka's local governments have community engagement approaches to taxation and financing that are innovative and effective in a post-conflict setting, but a lack of institutional capacity and political centralisation inhibits them. Nepal's decentralisation towards federally guaranteed local entities enables the possibility of generating local revenues through more equitable federal–provincial–local revenue sharing. However, significant factors such as geographic diversity, institutional inefficiency, and weak governance structures may act as hurdles to this end. A comparative analysis signifies that both municipalities depend on transfers from the centre, there is a need for institutional capacity, and that there is a financial crunch – the laws and government practices in every nation, as well as the economy and other social factors. The findings provide Bangladesh with valuable lessons. Union Parishad's (UP) financial sustainability is bolstered by institutional reforms, participatory governance, and fiscal independence. When regional nations begin mobilising their own resources for domestic development, the dependence on more powerful nations lessens. The grassroots level development can, in turn, reduce the dependence on firms/organisations. In a nutshell, resource mobilisation is critical for sustainable development in the region. The localised financial practices of Bangladesh and South Asia will be discussed in this chapter. It helps understand the unique efforts of the country.