Financial autonomy of union parishad: A case of buripota union under Meherpur district

Abstract

The evolution of local government in rural Bangladesh can be traced back as early as 1870. Village authorities used to undertake all such functions as defense, preservation of law and order, punishment of crime, settlement of disputes, collection of revenue etc. Village society used to make its own laws and took care of its own decisions. Local government is working all over the world in various forms. At present, we have a four tier local government institution headed by a ministry. These tiers are interconnected and dependant on each other, and their powers and functions frequently overlap. Among the four tiers, Union Parishad is considered the most important tier. This is why the Union Parishad is selected for this study. In Bangladesh, the constitution has provided a right and legal framework to the local government and its composition and power. Therefore, the importance of the local government as well as Union Parishad can easily be understood. Union Parishads being the century old rural local government in Bangladesh are yet to fulfill the expectations of rural citizen which is mainly due to own resources constraints including miserable local resources mobilization. This study focuses on Union Parishads revenue mobilization and utilization trend and performance and evaluates the performance by the data collected from Parishad representatives, local people, government officials and national experts. Finding of the study shows that Union Parishads are not enjoying any autonomous status in revenue mobilization and utilization performance as there is excessive central government interference in terms of financing. This study also shows that despite revenue potentials, weak revenue administration, inadequate adjustments and assignments of local revenue sources including lack of Union functionaries training become impediments on autonomy. This study has identified different factors that reveal the existing threats and challenges for decentralization and financial autonomy of Union Parishad in Bangladesh. These are classified as independent factors and dependent factors. Financial autonomy is considered as dependent factors and social, political, economic and bureaucratic resistances are identified as the independent factors. The major findings of this research are: a) Union Parishad must have its own decision making power, ability to utilize fund independently, rules of procedure, budget and will undertake and carry out local development activities independently, b) Political interference in Union Parishad activities impedes smooth functioning of the Union Parishad, c) Lack of proper coordination of Union Parishad activities creates problems in effective decision-making, project formulation and financial management, d) The level of participation of the general people in the Union Parishad activity is very insignificant. Etc. Based on these findings, the study assumes that the government and the Union Parishads have to be active in this regard. Otherwise, the dream of socio-economic development of the people will remain unfulfilled.