Result Area 1: Capital Grants to Town Councils

The program will introduce a capital grant window to the inter-governmental fiscal framework, that will provide dedicated resources to Town Councils to meet their capital investments, incentivize institutional performance and enhance accountability of Town Councils.

Result Area 2: Strengthened Public Financial Management (PFM), Transparency and Accountability of Local Authorities (LAs).  

  This will require TCs to carry out their core PFM and procurement functions in an efficient, accountable and transparent manner.  This result area is about strengthening governance aspects of decentralization. 

Result Area 3: Strengthened Fiscal Framework for Devolution.

The DIP has identified many gaps in the fiscal landscape at the local level including high indebtedness, unsustainable management of debt, dwindling local own resource revenue etc.  Keeping in line with the priorities of the Government, the result area three will contribute towards the review and reform of the existing fiscal framework for decentralization such as the review of the intergovernmental resource allocation, and a review of the gaps in the existing policy and practice frameworks for local revenue collection and local debt management.

Result Area 4: Capacity Building of Town Councils.

The Government is reforming the human resource management system and has embarked on a comprehensive capacity development program for LAs to enhance, efficient and quality of service delivery.