Non-tax own-source municipal revenues
- Author: United Nations Human Settlements Programme
- Main Title: Finance for City Leaders Handbook , pp 48-63
- Publication Date: November 2016
- DOI: https://doi.org/10.18356/7df6e7af-en
- Language: English
The revenue available to local governments is a key determinant of a city’s ability to provide the services citizens need and to meet expenditure requirements. In cases where revenue is constrained, infrastructure investments often suffer, and government services are reduced. Consequently, the need to diversify, grow, and mobilize revenues is one of the most pressing challenges city leaders face in various regions of the developed and developing world. Building a solid revenue base depends on a number of factors, including empowering city leaders to grow and diversify their own-source revenue pool to complement external revenue flows (e.g., intergovernmental transfers) over which local government officials lack direct control. It also requires enabling city leaders to mobilize own-source revenues, after they are raised, by harnessing financial tools that can support their strategic priorities (e.g., land-based financing instruments, debt instruments, and public–private partnerships, among others).
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