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. 

Impact

Since 2013, a total of
47
local authorities have been provided with technical assistance for improving their revenue generating capacity.
19
Municipal authorities have developed strategies for improving their revenue generation and management capacity.

“UN-Habitat helps us when we experience technical difficultis with the billing system. Since the implementation of these systems, there has been a remarkable growth in property tax revenues. In Berbera, the revenue collection system has tangible benefit for both local government and the local community, and has impacted the education sector directly.”

Mohamed Iman, Coordinator GIS Hargeisa, Somalia

Related Sustainable Development Goals

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SDG 10 logo
SDG 11 logo
SDG 16 logo

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.

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