The challenge

Improving municipal finance is a first step to achieve sustainable development. Over the past few decades, countries have increasingly decentralized their political systems and devolved responsibilities for public service provision to subnational governments. Increased mandates of subnational governments are however, not always matched by adequate increases in financial resources from the central government to lower levels of governments. 


Since 2013, a total of
local authorities have been provided with technical assistance for improving their revenue generating capacity.
Municipal authorities have developed strategies for improving their revenue generation and management capacity.

News and Stories

“First it is a system that all branches of the government rely on. Secondly, it enables us to neatly put in and retrieve any information from its databases about property ownership and taxation. On the other hand, the system not only let us generates this easily but it also improved our tax collection capacity by indicating who has paid the bills and who has not. If you step aside, you can see roads that are well built and repaired as well as infrastructure in good shape. We have accomplished many other projects from our budget, including a new library. To serve the education sector better we need a bigger budget for specific offices and especially our own system to allocate money. We have taken these systems to mange the quality of teachers to protect students’ education and improve the curriculum.”

Abdishakur Mahmoud Hassan, Mayor of Berbera, Somalia

Donors and partners

The success of Municipal Finance programme is dependent on fostering strong partnerships and bringing together a variety of actors around the common goal of improving the financial capacity of local authorities. Each partner has its own competitive advantage and so UN-Habitat tries to complement its project work with the specific partners best positioned to support the intervention. As such UN-Habitat attempts to foster a constant knowledge exchange on issues of Municipal finance with leading academics and practitioners and engage in joint projects wherever possible.

Our Experts

Chief, Planning, Finance and Economy Section
Urban Practices Branch, Global Solutions Division

Related Sustainable Development Goals

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