Municipal Finance in Nepal Handbook

The Municipal Finance in Nepal Handbook provides a comprehensive overview of Nepal’s municipal fiscal system, exploring how local governments mobilize, manage, and utilize financial resources to deliver public services. The handbook begins by outlining the concept and framework of municipal finance, including key terminologies and objectives. It then delves into sources of municipal revenue, such as taxes, fees, and grants, followed by detailed discussion on municipal expenditure management and budgeting processes. The handbook examines the role of the federal and provincial governments, intergovernmental fiscal transfers, and the legal and institutional arrangements that support municipal finance. The handbook also highlights practical aspects of revenue administration, accounting, auditing, and reporting systems, along with financial challenges faced by municipalities. Drawing from field experiences, policy analyses, and case examples, it offers recommendations for improving fiscal sustainability, transparency, and efficiency in local governance. This resource serves as a key reference for policymakers, municipal officials, researchers, and practitioners engaged in strengthening Nepal’s local financial systems and advancing fiscal federalism. 

This handbook has been prepared by UN-Habitat as a part of the project "Accelerating the Localization of Integrated Climate Actions in Nepal", jointly implemented in Nepal by WFP, UNDP, and UN-Habitat with the support of Joint SDG Fund.