Local Governance Specialization

LG 475: Local Finance in Nepal

The course intends to impart knowledge of finance especially in local bodies of Nepal. Students will be able to understand dynamics of local finance after completion of this course.


  1. Introduction: Concepts of local finance, Need and importance of Local Finance in Economic Development
  2. Fiscal Decentralization in Nepal: Approaches of Fiscal Decentralization, Fiscal Decentralization Policy and its dimensions
  3. Fiscal Federalism: Concept of Fiscal Federalism, Division of Fiscal Power and Functions: Allocation, Distribution and Stabilization, Vertical and Horizontal Fiscal Relationship
  4. Local Government Revenue and expenditure in Nepal: Sources of revenue at local bodes in Nepal: Tax and Non-tax , Grants in Aid, Local Government Borrowing, Pattern of Local Government Expenditure, Local budgeting, Local accounting and auditing
  5. Resource Mobilization at local bodies, Resource Mobilization at Local Body: DDC, VDC and Municipality, People’s Participation in Local Resource Mobilization, Role of Partnership for Local Resource Mobilization, Issues and challenges of local finance in Nepal, Case study


Acharya, Balaram (2062). Rural Development: Theories and Approaches. Kathmandu: National Book Center.

Adhikary, Shyam Prasad (2038). Rural Development in Nepal Problems and Prospects. Kathmandu: Lalitpur Sajha Prakashan.

AZIZ Sartaj(1978). Rural Development. London: The Macmillan Press Ltd.

Chambers, Robert (2004). Rural Development :Putting the Last First. Delhi: Pearson Education.

Das, Prabhakar Lal (2054). Sociology of Rural Society. Kathmandu: Rekha Rani Prakashan.

Hada, Gambhir Bahadur (2062). Rural Economics of Nepal. Kathmandu: Dikshanta Pustak Bhandar.

Hada, gambhir Bahadur (2063). Rural Resources, Environment and Management. Kathmandu: Gyankunja Pustak Bhandar.

Singh, Katar (1999). Rural Development: Principles, Policies and Management. New Delhi: Sage Publication.