A Study of Financial Management Performance, Problems and Prospects of Hetauda Municipality in Nepal

Abstract

 The municipal financial performance, problems and prospects are interrelated matters with each other. The main intents of the study are to analyze the municipal financial performance and to identify the financial management problems and its possible improvement techniques. A descriptive and analytical research design was applied among 168 respondents (34 municipal policy advisors and 134 municipal taxpayers) of Hetauda municipality and simple random sampling method was used to select the municipality as a sample. Simple random sampling method was used to select the respondents as well.  The average budgetary performance of Hetauda municipality is around 80 percent only. The average contribution of internal revenue sources to total revenue is more than half. The portions of administrative expenditure and development expenditure of total expenditure are more or less 21 and 64 percent respectively. There are a lot of financial management problems and possible improvement indicators, too. Both the policy making advisors and taxpayers have not unanimous voices on these problems and prospects. Hetauda municipality has a chance to overcome the problems by using improvement indicators and collecting own source revenue to fulfill the public demand.