Financial Resource Mobilization in Pokhara Sub-Municipal Corporation

Local bodies can play a vital role in nation building process through efficient mobilization of local financial resource. Financial resource mobilization includes both raising the adequate revenue and optimal allocation of funds to meet the local people’s needs. Municipality finances its expenditures with internal and external revenues. It has to increase its efficiency in allocating financial resources to maximize the marginal productivity of resources. POVERTY IN NEPAL HAS persisted for decades. It is deep-seated and complex phenomenon for which there are no quick and easy solutions (NPC 2003). Peoples ' expectations have risen after the restoration of democracy in 1990. Development activities have largely failed to meet the aspiration of the people. The Tenth Plan's sole objective is to achieve a remarkable and sustainable reduction in the poverty level-from 38 % to 30%-by the end of this plan. To achieve this objective, financial, human and natural resources have to be mobilized efficiently. HMG/Nepal, indeed, plays a vital role in the allocation of nation's resources. But, because of the proximity to people's needs and local resources, local government can be more effective in identifying and allocating the local resources. The lacking of financial resources is a major cause of economic backwardness of underdeveloped country like Nepal. No doubt, insufficient financial resource is an important responsible factor, but in fact, inefficient and irrational allocation of resources is also equally responsible for nation's economic stagnation. The local finance can play a significant role in nation building process. Keeping this reality in view, local government should be strengthened and empowered in mobilizing the local financial resources. The Constitution of the Kingdom of Nepal, 1990 has highlighted the norms of local self-governance in its directive principles and policies of the state. It has emphasized the equitable allocation of financial resources for the development of basic infrastructure in all regions. In accordance with the spirit of the constitution, the Village Development Committee (VDC), District Development Committee (DDC), and Municipality Acts were enforced in 1991. Similarly, in the process of strengthenin