Strengthening Municipal Governance through Performance-based Budget Allocation in Bangladesh

Abstract

This publication details results from the Urban Governance and Infrastructure Improvement (Sector) Project which aimed to improve infrastructure of pourashavas (secondary towns) in urban transport, drainage, water supply, sanitation, municipal facilities, and solid waste management through a performance-based budget allocation strategy. In Bangladesh, pourashavas—home to about 40% of the urban population—are an alternative destination to large cities. However, with the infl ux of urban residents within the next decades, governments and development partners must lead pourashavas toward sound and balanced urban development. The project strengthened the technical and fi nancial capacity of pourashavas and raised awareness on the importance of paying taxes and tariff s. Citizen empowerment made decision making in pourashavas more participatory and inclusive, leading to more transparent and accountable town management.