Investor Presentaiton

4. Challenges for urban LGs in Implementing SDGS 4.1 General observations ◉ ◉ ■ The national budget allocation for the LG has remained inadequate for LGIs to function properly. Decline in LGD budget as a share of total budget, low Annual Development Programme expenditure, pose an even greater threat for the financial autonomy of the LG. For instance, LGD allocation as share of total budget decreased in ABFY14, ABFY16, ABFY17 and FY19 from respective prior FYs (CPD 2018a) There is also a lack of political commitment in raising own-source revenue through proper mobilisation of local resources (Bhattacharya et al. 2013) in LGIS The insufficient financial incentives also have an impact on attracting Crore BDT Local Government Division (LGD) Budget 35,000 8.00% 7.61% -7.08% 30,000 6.59% 6.87% 7.14% 7.00% 25,000 5.71% 6.27%.00% 5.00% 20,000 4.00% 15,000 3.00% 10,000 2.00% 5,000 1.00% 0.00% (A) 2012-13 2013-14 2014-15 2015-16 2016-17 Revised Proposed (A) (A) (A) (A) 2017-18 2018-19 LGD budget allocation ―LGD Budget as percentage of total budget skilled employees at (Bhattacharya et al. 2014) LGIS LGs therefore tend to depend heavily on central government financial transfers, which, to an extent, forces the LGIs to compromise on their financial and functional autonomy (Bhattacharya et al. 2013) 38 % of total budget

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