Municipal tradition in Bangladesh CHAPTER-1

INTRODUCTION

IntroductionMunicipal tradition in Bangladesh, as elsewhere in the sub-continent, is a colonial heritage, which started its way with the setting up of Municipal Corporations in the Presidency Towns of Madras (1688), Calcutta and Bombay (1726) by the British East India Company. Municipal administration took no clear shape until the 1840s; though various experiments were carried out during subsequent attempts. The Act of 1842 was the first formal attempt for municipal organization. Under this Act, a Town Committee could be formed for sanitation purpose. The Act was followed by few other subsequent endeavors, such as the Acts of 1864, 1876 and 1884. The earliest municipalities in the present Bangladesh were Nasirabad (1856), Sherpur (1861), Dhaka (1864), Chittagong (1864) and Brahmanbaria (1868).After the independence of Bangladesh in 1971, all local bodies operating under the legacy of colonial practice were dissolved through the President’s Order No. 7 of 1971. By the President’s Order No. 22 of 1973 municipalities were revived with few marginal alterations in their structure and composition, though their functions remained more or less same as they were during the colonial period. A new ordinance called Pourashava Ordinance was promulgated in 1977 with substantial and necessary alterations in structure, composition and function of the poursashava. The Pourashava Ordinance 1977 was replaced by the Pourashava Ordinance 1997. The incorporated areas administered by the government as urban areas under the Pourashava Ordinance 1977 are considered as the pourashava (Population Census 1991, Census of Slums 1997). Pourashava occupies a very important place in the overall system of administration and governance, lies at the lowest tier of local government structure of Bangladesh for urban areas. As a key local government institution, it enjoys statutory status constituted andfunctions as an autonomous self-governing unit. The prime objective behind the setting up of such an institution is to render some important civic services to the urban population, to address localized problems and prospects of urban area and to find out best-fitted solution for coping with those problems and to harness those prospects by the local people themselves and their representatives in association with the central government. Because, without close and intimate contact and active participation, no problem can be completely realized and as such the solution may be misleading, which in turn may result in a complex set of problems and wastage of scarce resources. Thus, as a part of bottom-up and participatory approach, pourashavas offer enormous potential and advantages to achieve optimum level of development and to ensure availability of basic urban services to the pourashava dwellers. For more autonomy, democracy and sustainability of the pourashavas, they must be made financially self-sufficient, which will expedite the ability of pourashavas to provide better facilities and amenities to their inhabitants (Faizulla, 1996). But most of our paursahavas have so far completely failed to attain intended targets regarding the provision of basic civic services and facilities for their inhabitants so far due to weak financial management. As a

result basic civic amenities and urban services have become a far cry in almost all the pourashavas in our country.1.1 Background and Present State of the ProblemAccording to the Pourashava Ordinance 1997, pourashavas were established for providing urban facilities like sanitation and control of environmental pollution, removal, collection and disposal of refuse, prevention of infectious diseases, provision of water supply, provision of drainage, maintenance of public streets, street lighting, traffic control etc. But pourashavas have failed to provide the mandatory services to the taxpayers. Most of the pourashavas lack a proper drainage system, sufficient road network, adequate street lighting, regular garbage collection and adequate water supply (Taleb, 2004). The overall level of urban service is very insufficient and unsatisfactory. For example, in Haziganj (13.83 sq. km) there are only 24 water supply connections including domestic, commercial, industrial and others to serve 52,125 inhabitants and in Barisal (38.84 sq. km) there are 6,740 water supply connections including domestic, commercial, industrial and others to serve 1,96,700 residents (LGED, 1998-99). The electrification coverage in terms of area ranges from 4% in Pirganj to 90% in Alamdanga and in terms of population from 5% in Barura to 85% in Manikganj. The conservancy coverage in terms of area ranges from 2% in Kalia to 95% in Bheramara and in terms of population from 14% in Santhia to 90% in Barisal. There are many reasons behind such poor level of services such as institutional and organizational inefficiency, corruption, illegal political interference, and lack of public participation, transparency and accountability and over all shortage of funds (LGD, 1998). Government block grants to 1st class pourashavas in Bangladesh decreased from Tk. 95 lakhs in 1995-96 to Tk. 60 lakhs in 1997-98 (LGD, 1996; LGD, 1998). On the other hand, pourashavas fail to properly assess and collect taxes and revenues. For example, in case of Dinajpur Pourashava, assessment is estimated to be 6.67 times less than the actual amount (Taleb, 2004). Percentage of water bill collection in case of Rangpur is 15% and in case of Kurigram 23% (LGED, 1998-99). It is clear that pourashavas can increase their revenues by assessing taxes properly and collecting them regularly. The international financial institutions (e.g., World Bank, Asian Development Bank etc.) and donor agencies (e.g., DFID, CARE, CIDA, DANIDA etc.) are showing less interest about pourashvas due to under assessment of holding taxes and low rate of revenue collection (LGED, 1999). But even if pourashavas collect revenue from their own sources properly, the question still remains as to whether that amount is sufficient enough to meet the cost for provision of mandated services. The objective of this research is to find an answer to this question with case studies of Manikganj Pourashava and Madhabdi Pourashava as representatives of A and B category pourashavas respectively.Objectives of the StudyThe objectives of the proposed research may be outlined as follows:

To find out the extent of services currently provided by the pourashava especially conservancy, street lighting and water supply, road maintenance and the cost incurred for such services.

To determine the likely required cost for providing adequate services to poura-inhabitants.

To assess whether proper collection of taxes can raise enough funds for provide adequate services.

Scope of the StudyThis research was carried out to fulfill the requirements of an academic degree and the scope of the study was limited. According to the objectives set out for this study, the output of the research can help the policy makers to realize the approximate income and expenditures of different types of pourashava.

Methodology of StudyThe methodology of the study can be described as the following steps:Step 1: Formulation of ObjectivesThe first step of the study was to set out objectives on the basis of which the research work would proceed. It is the most vital part of the study because the objectives set for a study indicate the procedure of the selection data and information, their collection and processing, and above all final recommendations from the findings of their analysis. The particular objectives formulated for this study have been stated in the Section 1.3 of this report.Step 2: Determination of Required Data and Information to be CollectedFor the study purpose two pourashavas have been selected as case studies. These pourashavas are:

Manikganj, a category A pourashava, and Madhabdi, a category B pourashava

To fulfill the objectives of the study the type of data and information to be collected and the possible sources for such data were determined. The following data and information were collected from secondary sources:

1. Area of the pourashavas2. Annual budget3. Financing authority4. Annual taxes and revenue income5. Annual income and expenditure 6. Demographic information7. Infrastructure inventories8. Magnitude of existing services9. Scope for better services10. Maps containing different information like land use, road network etc.

Step 3: Literature SurveyFor conducting any research work relevant literature survey is an inseparable as well as essential step. From literature survey we can get knowledge and idea about previous works of pertinent track, which help us to proceed in more effective and efficient manners. It provides an opportunity to fine tune our thoughts and ideas. So, relevant research papers, journals and writings were sought to make the study more realistic and useful.Step 4: Collection of Data and Information Data and information as required for the study were collected from various sources. First of all information like population data, state of the pourarshavas etc. were collected from secondary sources. Some necessary information like annual budget, annual taxes and revenue income, and annual income and expenditures of the pourashavas were collected from the respective pourashava offices. Relevant data like infrastructure inventories were also sought from the Local Government Engineering Department (LGED). Required census reports were collected to get realistic data. Moreover, different data and information considered to be useful were taken into account while physically visiting the pourashavas several times. Maps as well as photographs were collected from various primary and secondary sources. All these data and information were then accumulated and organized depending on importance and justification.Step 5: Evaluation and Analysis of Data and Information Collected

I. The collected data were analyzed to determine how many people are getting services and to what extent.

II. The demographic data, cadastral and road maps and data obtained in the previous steps were used to calculate the additional quantum of services required.

III. The cost for extended services in terms of population and areal coverage were calculated with inputs from concerned officials and experts.

Step 6: RecommendationsThe prime motto of any research work is to find ways and means for achieving the pre-defined objectives. While formulating recommendations the jurisdiction of the research was always tried to maintain. Because of any recommendation which does not comply with the basic objectives should definitely be rejected due to exceeding the boundary. So, in this research realistic and logical recommendations were tried to formulate incompliance with the objectives after evaluating and analyzing the collected data and information.

Figure 1.1: Schematic Diagram of the Methodology of the Study

Amount of revenue income from

different sources

Requirement of funds to

provide optimum

services to the

inhabitants

Determination of required data and information to be collected

Existing services

provided by the selected

pourashavas

Inception

Data collection

Primary sources from

selected pourashavas

Secondary sources

Physical and socio-economic

characteristics of the selected pourashavas

Amount of expenditures to provide services to dwellers

Level of services

provided to the dwellers

Evaluation and analysis of data

Literature review

Fact-finding and synthesis

Formulation of policy guidelines

Literature survey

Formulation of objectives

CHAPTER-2

DESCRIPTION OF THE STUDY AREASPhysical CharacteristicsPhysical characteristics of a pourashava is determined by considering some specific parameters like location, geographical extent, topography, climatic condition and land use pattern etc. Based on these parameters the physical characteristics of both Manikganj and Madhabdi Pourashavas will be described in this section. LocationMadhabdi Pourashava is situated in Narsingdi District. Narsingdi is an industrial and commercial area on the west bank of about 58 km north-east of Dhaka. On account of the local textile mills, Madhabdi is mainly an industrial and commercial zone in Narsingdi District. Madhabdi is 43 km away from capital Dhaka. Dhaka-Sylhet Highway passes through this pourashava. Sheker Char and Hanumontopur are at the northern side; Austopaika, Algi, Choddopaika and part of the Kotualir Char are at the eastern side; Choto Ramchondi, part of Birampur and part of Kotualir Char are at the southern side and Araihazar Thana of Narayanganj District at the western side of the pourashava. Road transportation is the best way of communication with this Pourashava. It is located between 23059/ and 24001/

north latitudes and between 90040/ and 90044/ east latitudes (Google Earth). In the rainy season, Mora Brahmaputra River can be used to communicate with the pourashava from any part of the country, especially from the eastern side of the pourashava. Baburhat and Sheker Char markets are famous throughout the country as trade centers of quality cloths.Manikganj Pourashava is the most populous area of Manikganj District. Manikganj Pourashava is the only urban area of the Thana. Nothing is definitely known about the date of creation and origin of the name Manikganj. It is learnt that the previous name of Manikganj was Dakra. There came a saint named Manik Darbesh and he settled here. He was very pious. He was very co-operative minded and helpful to all. It is said that he was endowed with some spiritual powers. People of all classes and religions went to him when they were confronted with any problem. Later on, a trading center meaning Ganj in Bengali around the hermitage of that saint was developed. It is generally believed that that the name of Dakra was changed into Manikganj after the name of Manik Darbesh. It is located between 23046/ and 23051/ north latitudes and between 89058/ and 900 07/ east latitudes (Google Earth). The pourashava is bounded on the northern side by Saturia Thana, on the southern side by Harirampur Thana and Nawabganj Thana of Dhaka District and on the western of Ghior and Harirampur Thanas. Manikganj Pourashava is not very far (75 km) from the capital city Dhaka. Geographical Extent Madhabdi Pourashava was established on 2 July 1994 with about 5.09 sq. km of area. There are nine wards in this pourashava. Ward 1 comprises Anandi, part of Godaichar, part of Choto Madhabdi. Ward 2 comprises Godaichar and it is the largest ward of the pourashava. Ward 3 comprises Choto Madhabdi. Ward 4 comprises part of North Birampur. Ward 5 comprises part of South Birampur. Ward 6 comprises Boro Nowapara and Tata Para and it is the smallest ward of the pourashava. Ward 7 comprises Monoharpur and Kotualir Char. Ward 8 comprises Parkasipur, Monoharpur, a part of Choto Madhabdi and a part of Kotualir Char. Ward 9 comprises a part of Kotualir Char.

Table 2.1: Ward wise area distribution of Manikganj and Madhabdi Pourashava Ward no. Area (in sq. km)

Madhabdi Manikganj01 0.98 3.7102 1.30 6.3203 0.24 4.3304 0.47 6.2005 0.38 2.8806 0.25 2.2207 0.36 4.3608 0.43 3.0509 0.69 6.02

Total 5.10 39.09 Source: Population Census-2001

Manikganj Pourashava was established in 1972. At present it occupies an area of 39.09 sq. km previously, in beginning which was 20.60 sq. km. The pourashava, like many other pourashavas, consists of nine wards in place of the previously set-up three wards. Ward 1 comprises Banagram Chak, Gangadar Patty, Noakanda and Porra. Ward 2 comprises Bara Bagjaria, Bhuijoyra, Manura, West Seota and North Seota. Ward 3 comprises Boitara, Bhanumati, Barai, Jhikuria, Kanderkand, Khilkinda, Narangai, Nabagram. Ward 4 comprises Bagjuri, Char Hijulia, Dhakuapara, Hijuli, Malancha, Patai and Raintha. Ward 5 comprises East Dashora. Ward 6 comprises West Dashora. Ward 7 comprises Ander Manik, Beotha, Char Butta, Helachai and Joynagar. Ward 8 comprises South Seota, Kandapaul, West Bandalia and Ward 9 comprises Barashurundi, Bolla, Kusher Char, Algir Char and Sonakanda.Topography The general topography of Madhabdi Pourashava is flat with little slopes. The area near the Asian Highway is much more sloping than other areas of the pourashava. The average elevation above mean sea level is 23.65/ with the lowest and the highest parts being 12/ and 25/ respectively. Most settlements are above the 21/ contours while land below 16/ is used for agricultural purpose. Nevertheless, there are settlements between 17/ and 21/ levels. There is a river named “Mora Brahmaputra” which flows through Madhabdi Pourashava. During the dry season there is little water in the river and in the rainy season it turns overburdened and causes devastating flood by turning overburdened and consequent havoc by submerging and inundating the adjoining areas. There are also some water bodies such as ponds, ditches etc. here.In Manikganj Pourashava most of the land is low-lying. The pourashava is within the flood level. Here flood has become a regular phenomenon. So, constructions of new buildings require more cost and also require more soil to make the land free from recurring natural calamity. But low land is suitable for cropping specially for rice production. There are five ponds in the pourashava. The ponds are mainly used for fishing. A channel flows through the pourashava. The channel has historical importance. Earlier it was the only communication network of the area. The channel was used for carrying goods and transportation purpose. But at present, the channel is in the process of vanishing due to encroachment. By removing the illegal structures over it and ensuring regular drainage, it can be used both for communication and recreational purposes.

Climatic Condition There is no local meteorological office to forecast the weather at Madhabdi Pourashava. Only in Narsingdi, there is a rain gauge, but the meteorological office does not have any other hi-tech measuring device. So, considering the proximity to Dhaka, the climatic features of Madhabdi may be expected to be similar. The maximum and minimum temperatures are around 380C in summer and 90C in winter respectively. In summer (March-May) the mean temperature is 280C while in winter (November-January) it is around 220C. The average annual rainfall in Madhabdi is 2,127 mm. with the heaviest precipitation occurring during the June-August period.As Manikganj Pourashava is located very near to Dhaka City, the climatic condition of the pourashava is the same as Dhaka. So, the precipitation and temperature scenario are almost same as those of Madhabdi. The overall climatic circumstances are quite favorable for most of the commercial and industrial activities.Land Use PatternLand use pattern of Madhabdi is mixed, consisting of residential, commercial, industrial and agricultural uses. Maximum portion of land is used for agricultural (25%) purposes. Then come industrial (20%) and commercial purposes (15%) as well as residential purpose (15%). There are some open spaces for recreational use for the poura-dwellers. But the pattern of different land uses is unplanned. In the Table, land use scenario of both Madhabdi and Manikganj Pourashavas are depicted based on the sector wise percentage of the total area.

Table 2.1: Land Use Pattern

SectorPercentage of land use (%)Madhabdi Manikganj

Agricultural and Open Space 25.0 30.0Recreational 0.5 1.5Religious 1.0 3.0Public Administration 2.0 3.0Civic Amenities 3.0 5.0Educational Institution 3.0 5.0Road Network 7.0 8.0Others 8.5 5.0Commercial Institutions 15.0 10.0Residential 15.0 20.0Industrial 20.0 10.5

Source: Prepared based on the collected data from Manikganj and Madhabdi PourashavasLand use of Manikganj In Manikganj there is no land use regulation. All of the settlements are built in unplanned way. Residential settlements are built along the channel. Most of the settled areas belong to Ward 5 and Ward 6 where 16,094 people live according to the data collected from Manikganj Pourashava Office. The second highest built-up area belongs to Wards 2 and 4. The ratio of vacant land is higher in Ward 7 than in any other ward because the balu-mahal is situated here. The highly dense residential areas are Manara, Joynagar, West Dashora, East Dashora, Narangai, Patal, Dakuapara, Barai and Joyra. Commercial and business areas are located along the Shahid Rafiq Uddin Sharani, Beotha and around the Manikganj bus terminal area. Land in agriculture, residential, industrial and commercial use is 30%, 20%, 10.5% and 10% respectively. Total agricultural land of the pourashava is approximately 100 acres.

Socio-Economic CharacteristicsDemographic information, employment pattern, slums and squatter settlements, and commerce, trade and business are some of the major criteria for having an idea about the socio-economic characteristics of any pourashava. Based on these factors, the socio-economic characteristics of both of our selected pourashavas will be described in this section.Demographic InformationDemographic information includes the size and composition of present and future population, age, sex, education, mobility and so on. It also includes analyses of the social and indexes of function such as health, welfare, crime etc.Population StructuresAccording to the Population Census of 2001, the total population of Madhabdi Pourashava is 22,732 of which 13,090 are male and 9,42 are female. Among the total population, about 65% of the population is adult, 58% of the total population is male and 42% of the total population is female. At that time the sex ratio is 135 male per 100 female. The detail of population structure in 2001 is provided in the following table.

Table: Ward wise households and population distribution in MadhabdiWard no.

Households Population Sex RatioMale Female Total

01 351 1,044 772 1,816 13502 509 1,388 965 2,353 14303 545 1,232 704 1,936 17504 731 1,886 1,179 3,065 15905 466 1,392 1,080 2,472 12806 509 1,485 1,140 2,625 13007 570 1,604 1,327 2,931 12008 665 1,863 1,477 3,340 12609 497 1,196 998 2,194 119

Source: Population Census-2001According to the Population Census of 2001, Manikganj is a pourashava of 52,826 people among whom 27,485 are male and 25,341 are female. At that time the prevailing sex ratio was 107 male for per 100 female.

Table 2.3: Ward wise households and population distribution in Manikganj Ward no. Households Population Sex

RatioMale Female Total01 1,713 4,230 3,805 8,035 11102 1,151 3,255 2,774 6,029 11703 1,080 2,667 2,472 5,139 10804 1,138 2,573 2,524 5,097 10205 990 2,396 2,300 4,696 10406 1,905 4,150 3,474 7,624 11907 2,095 4,734 4,609 9,343 10308 424 895 950 1,845 9409 1,109 2,585 2,433 5,018 106

Source: Population Census-2001The literacy rate of Madhabdi Pourashava is satisfactory in comparison to other pourashavas of the country. But being a pourashava of Dhaka division and very closer to the capital city Dhaka, the rate is not appreciable. Although the literacy rate of the ward nos. 3, 4, 5 and 8 is above 60%. But the same of ward nos. 6 and 9 offer very indecent image-just less than 40%. The detail of the literacy scenario is provided in the following table.

Table: Ward wise literacy scenario of Madhabdi PourashavaWard no. Literacy rate (7+years)

Male Female Total01 61.02 53.06 57.73

02 65.37 53.98 60.70

03 70.92 46.94 62.70

04 79.46 69.38 75.68

05 74.07 61.72 68.73

06 30.97 32.13 31.47

07 64.38 55.19 60.27

08 76.15 65.78 71.63

09 41.05 32.66 37.21

Source: Population Census-2001Manikganj Pourashava is well known for its higher level of literacy rate. The gross literacy rate is about 66% according to the Population Census of 2001. Although the pourashava is still in agro-based type but there is no ward of containing less than 50% literacy rate which is really admirable. The detail of the literacy scenario is provided in the following table.

Table: Ward wise literacy scenario of Manikganj PourashavaWard no. Literacy rate (7+years)

Male Female Total01 84.39 72.62 78.59

02 60.64 49.96 55.73

03 77.95 69.21 73.77

04 59.44 48.35 53.92

05 80.72 71.94 76.37

06 81.17 71.14 76.62

07 70.32 58.68 64.58

08 64.33 51.09 57.48

09 59.88 50.53 55.37

Source: Population Census-2001Population DensityMadhabdi Pourashava is basically an industrial area. So, the density of population here is very high in comparison to other pourashavas of the country. The gross density is approximately 4,500 persons per sq. km according to the Population Census 2001. Here ward no. 6 is the highest populous ward and ward no. 8 is the lowest populous area. The ward-based population density is provided in the following table.

Table: Ward wise population density of Madhabdi PourashavaWard no. Density (per sq. km)

Madhabdi Manikganj01 1,853 2,16602 1,810 95403 8,066 1,18704 6,521 82205 6,505 1,63006 10,500 3,43407 8,141 2,14308 7,767 60509 3,179 833

Source: Population Census-2001In Manikganj Pourashava area, the densely populated areas are Manara, Joynagar, West Dashora, East Dashora, Narangai, Patal, Dakuapara, Baira and Joyra. The gross density of Manikganj Pourashava is about 1,400 persons per sq. km. Wards 2, 4, 8 and 9 belong to the least populated area because of the absence of appropriate infrastructure as well as inadequate services. Ward no. 6 is the highest populous locality. The growth of population had decreased during 1981-1991 and then increased in 1991-2001. But population density of Sadar Thana is increasing steadily at a constant rate due to the emerging trend of rapid industrialization.Floating and Migrating Population, Daily Commuters and Unrecorded PopulationFloating population are the mobile and vagrant category of rootless people who have no permanent dwelling units and they are found in the rail station, launch-ghat, bus-station, hat-bazars, stair cases of buildings and open spaces etc. Floating population represents a grim picture of extreme poverty and is considered as the basic cause behind other crucial problems. “Rootless people” are defined as landless people who have lost even the homestead areas of their parents and/or of themselves. The influx of population from rural areas to urban areas has been growing fast due to natural calamities and social factors as well as economic reasons. In Manikganj Pourashava, there is no actual data available about floating population but during visit some floating people were found in the court building area and in the bus terminal area.Migration plays a vital role in urban growth. A six-month interval is used as a cut-off point for considering one as a migrant except for marriage. A person will be considered a migrant if he or she has stayed or is likely to stay for a period of at least six months from elsewhere at his or her place of residence. There is no time limit for the migrant who changes his/her place of residence for marriage. Within Manikganj, the migration trend is 0.41 from rural to urban. But in case of outside of Manikganj, it is about 0.29 for rural to urban and for urban to urban is 0.04(Urban Slums and Squatter Settlement Report-1997).In Madhabdi Pourashava, very few people were seen along roadside, bus stand, and some places in the open air. These floating people are mainly day laborers that are mainly engaged in carrying industrial and commercial goods.The people who visit the pourashava but do not stay at night are termed as daily commuters. Tuesday and Saturday are hat bars, so people come to the pourashava for buying and selling goods from outside of the pourashava but they cannot stay in the pourashava at night even if need arises because there is no residential hotel in this locality. So, the number of daily commuters is quite large. But as yet no survey has been conducted regarding the commuters, their actual number cannot be determined.

The people who are living in the area but are not recorded in the census are the unrecorded population. The people who have come to the pourashava for living permanently after the latest census year are the unrecorded population. The number of unrecorded population is negligible in this pourashava according to the concerned officials.Holding Records Holding records are very important document for every pourashava. Because through holding records the pourashava authority gets an idea about the number of poura inhabitants upon which they prepare budget and future plan by analyzing the demand of different utilities and services.

Table: Types and Number of Holdings (2003-04)Holding Types Manikganj Madhabdi

Residential 12,919 6,375Commercial 163 185Government Officials 91 15Industry 38 65Welfare Institution 33 17NGOs 29 5Others 11 14

Source: Manikganj and Madhabdi Pourashava Offices Employment PatternEmployment pattern of an area influences the development activities. Secondary data about the employment pattern of Madhabdi Pourashava is not available. However, from primary source it was reported that about 70% of the population is involved in business sector. Most of the people are engaged in industrial sector. About 20% people are involved in agricultural sector. There are also some government and private employees in this area. Most of the women are housewives and remaining portion of the women is working in different types of industries, government offices, commercial and private offices. Table: Income Level of the Households of Manikganj and Madhabadi PourashavasPourashava Income level (per month) on the basis of households

Up to Tk. 2000 Tk. 2001-8000 Tk. 8001-15000 Tk. Above 15000Manikganj 558 6,542 4,068 1,162Madhabdi 274 3,204 1,993 569

Source: Population Census-2001In Manikganj Pourashava, the main source of income of the households is agriculture. About 30% of them are dependent on agriculture. Dependency on employment and business are 25% and 20% respectively. There is 5% non-agricultural labor (Manikganj Pourashava Office). The women are relatively more active than men. The women are mostly engaged in handicrafts. The inhabitants of Ward 1, 5 and 6 are relatively more engaged in business and the inhabitants of Ward 8 and 9 are mainly engaged in agriculture. The major share of the people earns money from other activities such as seasonal business and seasonal labor and also from some unspecified works.Commerce, Trade, Business and IndustriesMadhabdi is predominantly a commercial as well as an industrial area. Here a larger portion of taxes and revenues are generated from the industrial and commercial sectors. These sectors control the development of Madhabdi Pourashava. Most of the people are involved in business, trade and industry. Tuesday and Sunday have been declared as hat bars at the famous Baburhat and Sheker Char. A large number of people from different parts of the country come to this area for trading. So, huge amount of trips are generated from different parts of the country to this area for buying cloths. Bundles of cloths are bought and sold in

this area during the market days. Goods are loaded on trucks and vans on market days and transported to different parts of the country. Almost all of the industries in this area are textile-oriented. There are also some banks. Most of the shops are found in the market area.Manikganj is mainly an agro-based area. Most of the people are involved in agriculture. Some of them are involved in different types of businesses. As Manikganj is near the capital Dhaka and movement is very convenient both in roads and waterways, the trend of setting up of different types of industries are observing here.Slums and Squatters SettlementsA slum is a cluster of compact settlements having five or more households, which generally grows very unsystematically and haphazardly in an unhealthy condition on government or private vacant land. Slums also exist in the owner based households premises. After emergence of Bangladesh as an independent country in 1971 most urban areas were confronted with the problems of a sudden influx of people coming from all over the country for livelihood. With the passage of time, influx of population from the rural areas to metropolitan areas has multiplied. A large portion of them started building unauthorized shanty houses in abandoned land, khas or government land along the shoulders of the highways, within the rail stations, industrial belts etc.In Madhabdi Pourashava there is no slum and squatter. Most of the people here are involved with some sorts of business. It is predominantly a commercial and industrial area. So, the average income level of this area is much higher. The dwellers have the capability to pay for house rent. As a result, slums and squatters have not grown in this area.In Manikganj, there are four slums and the slum dwellers’ main source of income comes from rickshaw pulling. On the average, 5% of the slum dwellers are agriculture laborers whereas 10% of the dwellers are involved in begging, 20% of the slum dwellers are industrial laborers and most of the slum dwellers jobs are not specified. However, Beotha Ferry Ghat Slum comprised the highest 43 households in 2001.

Table 2.4: Main Features of Slums in Manikganj PourashavaSl. no Location of the slum Ward no. Household

nos.Population

Male Female Total01 Kali Bari 1 9 19 18 3702 Beotha Ferry Ghat 1 43 72 78 15003 Ferry Ghat Bazar 2 13 20 24 4904 Power House Para 2 17 24 32 56

Source: Census of Slum Areas and Floating Population-2001It is evident that the highest numbers of slums are located on government land and semi-government land (55%) and covers 60% of the total area occupied as slums. The next largest numbers of slums are located on private land (45%) covering 35% of the total land occupied by the slum dwellers (Rural and Urban Development Organization Report -2004).

CHAPTER-3DESCRIPTIONS OF THE EXISTING SERVICES

Utility ServicesWater supply, sewerage, sanitation and conservancy are the four basic components of utility services. Every inhabitant of the pourashava has the legal right to enjoy these services at a satisfactory level because they are paying taxes. In this section access of dwellers of both Manikganj and Madhabdi Pourashavas to utility services will be described.Water SupplyWater is inseparable and indispensable demand of all human beings. Access to pure and safe water is one of the most fundamental rights of every inhabitant. In Madhabdi Pourashava water supply scenario is really unexpected. There is no piped water supply system in this

pourashava. Almost all people of this pourashava are to depend on tube wells. Among total tubewells, a small number is privately owned and most are publicly owned.

Table: Ward wise distribution of drinking water sources in Madhabdi PourashavaWard no. Sources of drinking water

Tubewelll Well Pond Other01 295 1 0 002 453 1 0 103 384 2 0 304 663 0 1 005 436 5 1 106 443 2 0 2007 519 2 0 408 569 3 0 109 461 1 0 0

Sources: Population Census-2001The Manikganj Pourashava is bisected by the Kaliganga River. The area on the southern side of the pourashava does not get any piped water supply facility. Geographically Manikgnanj Pourashava falls under the major arsenic contaminated zone of the country. To save the inhabitants from danger caused by arsenic contamination the “Arsenic and Iron Removal Plant” was established here in 1998 and handed over to the pourashava authority in December 1999. It was a project of the Danish International Development Authority (DANIDA) under the supervision of Department of Public Health and Engineering (DPHE). Such plants exist in only sixteen districts throughout the country. The plant can remove up to 0.8 mg/l of arsenic where the government approved drinking standard for Bangladesh is 0.5 mg/l. However, it can completely remove iron from water.

Table: Ward wise distribution of drinking water sources in Madhabdi PourashavaWard no. Sources of drinking water

Tap Tubewelll Well Pond Other01 635 926 31 1 3302 53 1,053 6 0 2803 479 505 5 0 1604 113 995 5 4 1805 568 412 3 0 206 1,160 350 3 5 9107 1,288 679 6 0 4608 25 330 4 0 6309 244 813 2 0 18

Sources: Population Census-2001But the existing water supply facility is not adequate for the area in consideration of demand. It can supply only 25% of the total population (DPHE Data Book). The people depriving from the piped water supply facility use tubewells, ponds and rivers. Tubewells are mainly used for drinking purpose and ponds as well as rivers are used for bathing and washing purpose. Many tubewells marked red for arsenic contamination are used nevertheless, which is detrimental to public health. In this sector the system loss is about 30% (Manikganj Arsenic and Iron Removal Plant Office). Unfortunately many people use this treated water for irrigation purpose, which causes inadequacy of supply. There are about 22 km of pipe line have been provided for water supply of which the average annul extension is about 3 km. The detail inventory of this sector is shown in Table 3.1.

Table: Water Supply Inventory for Manikganj Pourashava

Type of structure No. / Quantity

Iron Removal Plant (IRP) 01Arsenic Removal Plant (ARP) 01Overhead Tank (1 lakh gallon) 01Deep tube well for drinking water 02Tube well 1125Average extension of pipe line per year 3 kmPiped water coverage 25Served population 17,411Pipeline 31 kmWater production 1614 m3/dayCurrent water production per capita 93 l/c/dCurrent pipeline per capita 1.78 m

Source: Manikganj Pourashava Office and DPHE Data BookFor ensuring uninterrupted water supply and better management, the whole pourashava is divided into two blocks- Block A and Block B. When water is supplied in Block A, Block B remains out of service and vice versa. The time distribution for water supply in the blocks is shown in Table 3.2. The water supply usually starts at 6:00 a.m. with Block A.

Table: Time Distribution of Water Supply at Manikganj PourashavaSupply Time

Block A 6:00 a.m.-8:00 a.m.Block B 8:00 a.m.-10: 30 a.m.Block A 10:30 a.m.-1:00 p.m.Block B 1:00 p.m.- 4:00 p.m.Block A 4:00 p.m.-7:00 p.m.Block B 7:00 p.m.-10:30 p.m.

Source: Arsenic and Iron Removal Plant Office of Manikganj PourashavaAfter 10:30 p.m. the whole plant is prepared for the next day through a washing process. The treatment plant authority maintains both the service and billing system. It is the only sub-sector of the pourashava where there is no deficiency. The billing system is based on the use category and diameter of pipelines. Rates for pipes of different diameters and holding types are shown in Table.

Table: Water Rate Inventory of Manikganj PourashavaUse category Pipe diameter

(Inch)Rate(Tk.

/month)Residential-A 0.75 180.00Residential-B 0.5 110.00Commercial-A 1.5 3,000.00Commercial-B 1.0 850.00Commercial-C 0.75 300.00Hospital, PWD 2.0 6,000.00Source: Arsenic and Iron Removal Plant Office

From the above-mentioned Table, it is revealed that there are two types of residential use categories and in case of commercial use it is of three types. The classification is based on the diameter of the pipe. As hospitals and Public Works Department (PWD) offices as well as

quarters are provided with the pipeline of highest diameter (2 inch), their monthly rate is fixed up as Tk. 6,000 per month.he area is naturally low and there are ponds, ditches throughout the area. Again, a canal and a river have surrounded it. The pourashava has a deficit of revenue at about one crore taka. These are other major barriers to the arrangement of a successful water supply system.Table:

2001Pourashava population

Served population

Unserved population

Unserved populationGiving 70%

coverage

Cost for 12Hour

operationWith 70% coverage

(Tk./month)

Cost per capita

(Tk./month)

69,644 17,411 52,233 31,340 108,360 2.2Source: DPHE Data Book

In Manikganj Pourashava, the number of total connection is 2,718 among them 2,628 are residential, 4 are residential and 86 are commercial connections. There are six deep tube wells of 350 mm X 150 mm in diameter. There is also a sub-meters pump with 120m3/hcapacity. There are also 2 reservoirs of 650m3 in capacity and a overhead tank of 450 m3 in capacity. At present there are 16 water supply staff engaged to supply approximately 3400m3

of water per day. The monthly operation cost is on an average Tk. 1, 60,000. At present 1,171 tube wells are enlisted as active and 224 tube wells are contaminated with arsenic (Arsenic and Iron Removal Plant Office).Proposed Infrastructure:

Pourashava

Unserved population

Unserved populatio

nGiving70%

coverage

Additional water

production

(m3/day)

Additional

StorageCapacity

(m3)

Additional

Pipeline(km)

Capital investment

-no treatment

(mTk.)

Capital investmen

t- treatment

(mTk.)

Manikganj 52,233 31,340 4,248 1,254 57.42 96.94 389.97Madhabdi 15,798 11,059 1,499 442 20.26 34.21 137.61

Source: DPHE Data BookConservancy

The basic functions of the conservancy department of the pourashava are:1. Solid waste collection and disposal in proper and hygienic way2. Elimination of stray dogs3. Effective measures against mosquitoes (both in direct and indirect ways)4. Cleaning and sweeping of roads5. Regular cleaning and maintenance of pourashava drainage and sewerage lines6. Awareness program against environmental pollution

In Madhabdi Pourashava, there are three trolleys and one truck engaged to collect and dispose garbage in the Ox-bow pond. The Ox-bow pond locating at Choto Madhabdi has an area of half acre. It is half kilometer away from the city center. Here pourashava’s market area is considered as the city center. Trolleys are in good condition and the truck is in fair condition, which means that the truck requires regular maintenance and repairing. Dwellers of this area are not satisfied with the prevailing garbage disposal system. According to the households, there is no proper system to collect residential refuse and industrial waste by the pourashava, NGOs or the Community Based Organizations (CBOs) within the pourashava area. Normally residential refuse is used as composted fertilizer in cultivable land but areas where there is less agricultural land, waste is scattered around, which emits obnoxious odor

and causes environmental pollution. Plenty of textile industries produce large amounts of waste daily. Such waste pollutes the water of the river Mora Brahmaputra. Water of this river is full of poison and the color has turned black. This water spreads serious odor and germs, which are harmful for the people. The river has lost its navigability due to filling up with wastes. Effective steps should be taken urgently to install an adequate number of bins in residential, commercial and industrial areas for ensuring the proper garbage disposal system and to mitigate odor and severe pollution of the pourashava. According to the respondents, dwellers of this area are ready to pay money for waste collection from door to door. CBOs can be set up by the conscious and literate persons of the community for proper garbage disposal system. Moreover, measures can be taken by NGOs for ensuring proper and suitable management of garbage.

Table: Solid Waste Removing FrequencyPourashava Solid waste removing

frequencyMode of transport Dustbin

Main Roads

Secondary Roads

Market Places

Trolley Rickshaw Van

Truck

Manikganj Daily Daily Once/W 2 4 3 18Madhabdi Daily Daily Twice/W 3 2 1 6

Source: Manikganj and Madhabdi Pourashava OfficesConservancy facilities are not in appropriate condition in Manikganj Pourashava. There are only three trucks, four rickshaw vans and two trolleys to meet the demand. But one truck has already gone out of order because of poor maintenance and management. Most of the people in commercial areas throw their wastes into the adjacent lake, which is about to be filled up. The people of the residential areas also use the lake for the same purpose. They also use surrounding ditches and open spaces adjacent to their houses. There are 18 bins located in a scattered way within the town; the cleaning intervals are long and irregular. To cover an area of about 40 sq. km and to serve about 90,000 population 18 dustbins are really too inadequate to meet the demand. There are also an inadequate number of bins for the collection of wastes. There are 24 sweepers for cleaning and sweeping of wastes from pourashava roads. They are employed on a Master Roll basis. In Manikganj Pourashava, there are two solid waste dumping sites of which one is located in Beotha River side and the other is located in Kawarzini area. The site of the Beotha River side comprises about two acres of land and about three kilometers away from the city center. But the site of Kawarzini comprises about half acre of land, which is about half kilometer away from the city center. The nature of the first site is low area and the other one is Ox-bow Lake.

Table: Pourashava Conservancy ServicePourashava Conservancy coverage Solid waste

Area(%)

Population(%)

Generated per day (tons)

Removed per

day (tons)Manikganj 20 30 6 4Madhabdi 40 50 3 2

Source: Manikganj and Madhabdi Pourashava OfficesFrom the Table 3.5, we can see that the coverage of conservancy service in Madhabdi is in a better condition than that of Manikganj. Madhabdi Pourashava has provided the service to about 65% of the total population. So, Manikganj Pourashava authority should pay more attention on this issue.Civic Amenities

Civic amenities comprise diversified services like electricity and gas supply, road network, transport etc. Based on these services, an attempt will be made to provide an idea about the position of our selected pourashavas. Manikganj Pourashava has already been connected with the national grid of gas. But due to technical and financial constraints the facility has been extended to the limited number of dwellers. However, in spite of being very close to capital Dhaka as we have already mentioned Madhabdi Pourashava is completely out of the natural gas facility.Street Lighting Services of the Pourashava.

Table: Pourashava Street Lighting FacilitiesPourashava No of

poles/points

No of lights energized in a month (average)

Street lighting coverage

in terms of

Total length(km)

Ordinary bulb

Tube light

Total Area Population

Manikganj 1,548 435 981 1,316 30% 60% 75Madhabdi 469 185 231 416 60% 75% 20

Source: Manikganj and Madhabdi Pourashava OfficesThe Rural Electrification Board (REB) supplies electricity in the pourashava area of Madhabdi. All the dwellers of this area can use the facility of electricity. There is no power generation plant in this pourashava. Power is supplied through the national grid. Electricity is being used for residential, commercial and industrial purposes. Though there are occasional power interruptions but respondents are satisfied with the prevailing electricity facility. There is a zonal office of REB for collecting of electricity bills. There are about 469 street light poles along the roadside of this pourashava. Among them at present 416 are capable to operate. But many of them do not operate properly due to poor monitoring and maintenance. Table: Existing service scenario on the basis of householdsPourashava Total households Households served by

existing serviceHouseholds totally

unservedManikganj 11,605 6,976 4,629Madhabdi 4,845 3,392 1,453

Source: Manikganj and Madhabdi PourashavasManikganj Pourashava authority has to pay the REB for the streetlights. The streetlight facility is inadequate in consideration of demand. 35% area of the pourashava is out of this facility. Streetlights exist beside the two main roads – Shahid Rafiq Uddin Sharani and Bus Stand Road. There are only 1,548 street light poles throughout the pourashava. Among them 1,316 are capable to work. But the inhabitants do not get regular service from many of them due to negligence and poor supervision. The supply of streetlights equipment is inadequate which the main cause of deficiency in this sector is. Moreover, it is the belief of the major portion of the inhabitants that the bulbs and other equipments that have been purchased for providing street light facilities are very often of below standard and of obsolete brand. So, their durability and service quality are poor. The sector also lacks care and adequate supervisors. There is no routine supervision system. There are six employees in this sector, who are employed on the Master Roll. So, they do not have full concentration on their responsibilities and duties due to the uncertainty and insecurity nature of job.

Road NetworkMadhabdi Pourashava has 8.508 km of pucca, 5.187 km of katcha and 2.516 km of semi-pucca roads. Most of these roads are narrow and unsuitable for large motorized vehicles such as trucks and buses. The average width of katcha road is 2.4 meter, that for herringbone bond

brick (HBB) road is 3.1 meter and bituminous carpeting roads are four meter wide on average. The approach from Dhaka-Sylhet Highway is an important access corridor for Madhabdi Pourashava. In Table 3.9 existing RCC roads along with their length and average width are provided.

Table: Existing RCC Roads of Madhabdi PourashavaSl.no

Road name Length(km)

Average width(m)

01 College Road-Shop of Sushil Babu 0.013 202 College Road-Fish Market 0.028 203 Near H/O Alto Mir 0.029 204 Milk Patti Road 0.029 2.205 Bayshakhi Mill-H/O Shajahan 0.031 206 Bank Road-Police Fari 0.058 207 H/O Guss-H/O Alto Mir 0.058 208 Batatala Road-Net Patti Mosque 0.060 209 Girls Scholl-H/O Safiuddin 0.084 210 Batatala Road-Babur Bari Gate 0.095 2.211 Battala Road-Shop of Nurul Haque 0.096 2.212 D/S Road-H/O Lukman Hossain 0.099 2.213 Nazrul Mill-H/O Showkat Ali 0.122 214 Battala Road-H/O Kongress 0.173 215 D/S Road-H/O Kazim Uddin 0.185 2.216 H/O Jahir-H/O Gourango 0.220 2

Source: Madhabdi Pourashava OfficePucca roads are motorable in all seasons but some of the semi-pucca and most of the katcha roads are difficult to use during the rainy season. Poor drainage causes rainwater to stagnate on some roads. Road maintenance is inadequate which adds to the sufferings of the dwellers of the pourashava. Among all services of Manikganj Pourashava, the maintenance of road network is the poorest. The pucca road network is not extended to all areas of the pourashava. A major portion of the pourashava exists on the bank of the Kaliganga River where the traditional boat is the only way of communication. Roads are unplanned, discontinuous and discrete. After the Pakistan period no significant development in this sector has taken place. The Shahid Rafiquddin Sharani is the only road in this town, which has a width of about 4.5 meter. But the width is not uniform throughout the entire road. The main area of the pourashava is divided into two portions by a canal. To connect the other part there is only one bridge. At present (till April 30, 2006) there are about 54 km of pucca roads, 8 km of brick roads (HBB) and 120 km of katcha roads in Manikganj Pourashava (MSU Inventory). There are 32 bridges and culverts within the pourasahava. The pourashava does not earn money from the roads and bridges because there is no provision of collecting tolls. The inhabitants use bamboo bridges to communicate with main town. Except institutional inefficiency, the deficiency of proper planning in the road network is the main impediment for the development of this pourashava. Naturally the whole pourashava is of low land. Again there are ditches here and there throughout the pourashava. The decision of expansion and maintenance of road network is fully determined by political influence, which causes barrier to promote a potential roads network. Again, bureaucratic delays and shortage of fund are also responsible for poor road network.

CHAPTER - 4AVAILABLE SOURCES OF FUNDS

Available Resources of the Pourashava:In this chapter the available resources of both Manikganj Pourashava and Madhabdi Pourashava in terms of fixed property like land, water bodies and some special resources like sand quarry, equipments of the pourashava will be discussed. The income that comes from these resources will also be considered.LandAccording to law, the pourashava owns the sairat mahals that falls within its area of jurisdiction. Sairat mahal includes hat, ghat, jol mahal, balu mahal, stone quarry etc. A pourashava also owns khas land, abandoned land, gardens and in some cases forests as well.The area of Madhabdi Pourashava is small in comparison to other pourashavas of our country. Moreover, being an industrial area, the land value of this pourashava is quite high. As a result, the land property of the pourashava is limited. These lands are at present used for multifarious income generating purposes. Followings are the noteworthy uses of the poura land property:

Hats, bazars etc. Markets where different types of shops are rented Public toilet for the residents Graveyard Bus terminal

The land and the structures upon the land are rented or leased to people by tender. As a result, these poura land properties become a significant source of annual income for the pourashava.There are certain complexities regarding the ownership of property between the pourashava and the District Collector (D.C) office. That is, according to the ordinance promulgated in 1965, the then Ministry of Health, Social Welfare and Establishment transferred the ownership of roads, right of ways, culverts, bridges and government khas land under the jurisdiction of the Town Committee to the respective institution. But these vested properties are still recorded or titled under the name of the D.C and such conflict becomes obvious when these roads, culverts, bridges require repair or maintenance especially in case of post flood period. Another negative outcome of that ordinance is government khas land within the jurisdiction of the pourashava but these are not titled by the pourashava and it does not have any authority over these properties.

Table: Immovable Properties of Manikganj PourashavaType of property Number Average income

from the property (Tk.)

Pourashava Office Building 1 NATown Hall 1 3,500Cinema Hall 1 44,000Burial/Burning Ground 2 59,857Inter-District Bus Terminal 1 71,227Public Toilet 10 47,110

Source: MSU Financial InventoryIn terms of land, the pourashava has its office building in the heart of the city on Shahid Rafiq Uddin Sharani. Currently it is being used for office functions but they have a scheme to convert it to a market place after shifting the office to a location away from the heart of the city. This is because high demand for land and its price is greater along Shahid Rafiq Uddin Sharani, which is the commercial hub of the city. The pourashava owns burial grounds and burning places also. A list of properties is mentioned in Table 4.1.

Market PlacesMadhabdi Pourashava possesses a market property of its own. It collects quite satisfactory amount of money from the rent of the shops of the market every year. Moreover, the pourashava property also includes hat, bazar, which are leased out every year. From the leased property significant amount of money is collected every year. Income from markets and vegetable markets constitutes a considerable part of the total income of the pourashava. There is one municipal market, one super market and three hats under the ownership of Manikganj Pourashava. Income from market places includes possession sale and rent of shops and lease of hat. Being a typical pourashava of Bangladesh, Manikgnaj also faces problems common to other such authorities in this sector. These are namely huge corruption in possession selling of the markets; unplanned building design, delay in construction process etc. The average income earned from the market place and hats as well as bazars in three consecutive years from 2002-03 to 2004-05 are shown in table 4.2 and 4.3.

Table: Income from Market Places Pourashava Years

2002-03 2003-04 2004-05Manikganj 5, 25,530.00 4, 50,880.00 5, 17,000.00Madhabdi 1, 69,200.00 1, 82,360.00 2, 05,000.00

Source: Manikganj and Madhabdi Pourashava OfficesTable: Income from hats and bazars

Pourashava Years

2002-03 2003-04 2004-05

Manikganj 61,748.00 95,912.00 1, 16,480.00Madhabdi 20, 00,000.00 21, 17,000.00 21, 69,000.00

Source: Manikganj and Madhabdi Pourashava OfficesOther Resources of the PourashavaOther immovable properties will be discussed under this head. By law, pourashava owns the sairat mahal that falls within its territory. Manikganj Pourashava has a balu mahal or sand pit on the Beotha River. It leases this sand pit every year by inviting tenders and earns a handsome amount of money. Manikganj Paurshava has one inter-district bus terminal and four ghats, which it leases on a yearly agreement through tenders. In leasing ghats, there is a condition of the government that the successors of patterned shall get priority. The rule of tender is that the bid must be greater than any of that of the last three years. Table 4.4 shows the incomes from leasing ghats and ferry-ghat of three consecutive years from 2002-03 to 2004-05.

Table: Income from Leasing ghat, Ferry-ghat, Bus-Terminal and Bus-Stand Pourashava Years

2002-03 2003-04 2004-05Manikganj 3, 40,270.00 3, 23,850.00 3, 75,490.00Madhabdi 15,880.00 17,670.00 18,430.00

Source: Manikganj Pourashava OfficeIn Madhabdi, there is no ghat or any type of sairat mahal like Manikganjj. It has an inter-district bus stand from which first collection came as Tk.15, 880 in the fiscal year of 2002-03 (Madhabdi Pourashava Office).Taxes and RevenuesThe resources of a typical pourashava in Bangladesh can be divided into three groups: internally raised revenues, government grants and loans and advances. Own source revenue

includes taxes, rates, fees, fines, tolls, rents and profits from own property. Own revenue is always the major contributor in pourashava income. The tax revenue sources of the pourashava are taxes on transfer of immovable property, on applications for the erection and re-erection of buildings, on professions, trades and callings, on amusement, vehicles, marriage, adoption and feasts. The rates include those for lighting, conservancy and water supply. Fees are collected from markets, licenses for slaughtering animals, from fairs, exhibitions and from schools. Other revenues include rates and profits from own property, interest from investment, fines and opening balances etc.Major Sources of Internal Revenues

a. Land based or property based revenuesThis includes taxes on houses, rates for street lighting, water and conservancy, urban immovable property and transfer tax etc. While the first three are entirely locally levied, the fourth is a shared tax with the central government.

b. Activity based or benefit based revenuesThis includes taxes on profession, trades and callings, tax on the application for erection and re-erection of buildings, tax on advertisements, amusement, vehicles, fees from markets, licenses and tolls on ferries, bus terminals and sand pits etc.Trade LicenseThis tax is levied on all businesses, firms, mills, factories, shops, banks, insurance companies or any other profit oriented organizations. This tax can also be levied on professionals like lawyers, engineers and doctors practicing within the pourashava territory. This practice is not yet in use. The revenues are collected against the issuance of license. The applicant has to buy a trade license application form at a rate of Tk. 25. The pourashava imposes taxes on these according to the prescribed rates mentioned in the tax schedules. There are no specific rules to fix trade license fees. An important fact is that the coverage of the trade licenses is quite high in Manikganj Pourashava. Here it has been made mandatory to clear holding taxes to issue or re-issue trade licenses.The taxes levied by the pourashavas are extremely low compared to the total capital invested or incomes earned. According to the license inspector of Manikganj Pourashava, following are the flaws of the present system of trade licensing:

1. In some instances it is seen that the shop owner needs a trade license while the owner of the land has overdue tax and as such the applicant would not get a license.

2. Trade license is not applicable for NGOs though they are very often profit making organizations.

3. The trade license inventory is not updated regularly. As a result there is entry of many businesses that do not exist today but was there five to ten years ago.

4. As there is no guideline for rating different businesses, sometimes it happens that a small entrepreneur has to pay higher tax compared to a big shop owner.

A general observation of the trade license system is that the license is issued in a loose form and every year the applicant fills up a similar form for reuse of his license. It is difficult for both the applicant and the license inspector to preserve such a huge number of loose pages every year. Realizing the reality, Government of Bangladesh (GoB) through LGED has already started a project funded by the World Bank named Municipal Support Unit (MSU). At present the project is operating in 54 pourashavas including Manikganj. From this project recently two computers have been provided to Manikganj Pourashava of which one is for Taxation Section and another one is for Engineering Section.

Holding TaxThe term “Holding Tax” is used to express one tax and three rates. The tax is that levied against the rental value of buildings and land on which the structures are made and the rates

are for lighting, water and conservancy. Holding tax is collected against the services provided by the pourashava. Here lighting means street lighting. There is a relationship between specific services provided and rate charged. The three rates are levied only where the services are provided. In both Manikganj and Madhabdi, holding tax rate changes depending with the location of holding.

Holding Tax AssessmentThe Municipal Taxation Rules, 1960, and Model Tax Schedules guide the pourashavas for detailed administration of these taxes. Holding tax assessment is carried out under rules 22 to 43 of the East Pakistan Town Committee Rules, 1961. Under these rules, properties are assessed at the annual rental value at the time of assessment. In case of owner-occupancy, it is difficult to assess the rent; a value is interpolated from the rents of similar properties (buildings) in the locality. All properties are assessed for taxation except places of worship and dilapidated structures having annual rental value of less than or equal to Tk. 50. For conducting tax collection assessment and maintenance of the tax rolls properly the wards of a pourashava are further subdivided into several maujas. Manikganj Pourashava has 46 moujas. The assessment is made in the following manners:

1. The rental income of whole year is estimated2. Two months’ rent income is deducted as maintenance cost3. Any mortgage interest cost associated with the parcel is deducted. Loans received from

any recognized institutions are only taken into account here.4. An additional 25% of 'ten-months’ rent is deducted in case of owner- occupancy.

The above deductions from annual rental value were introduced in 1964 by a special notification. In Manikganj and Madhabdi, taxes are assessed with the following calculations:

For holdings within the city propera) Tax on building 7% of the ten month’s rental incomeb) Conservancy rate 7% of the ten month’s rental incomec) Water rate 3% of the ten month’s rental incomed) Lighting rate 3% of the ten month’s rental incomee) Total holding tax 20% of the ten month’s rental income

For holdings outside the city proper a) Tax on building 7% of ten months’ rental incomeb) Water rate 3% of the ten months’ rental incomec) Lighting rate 3% of the ten months’ rental incomed) Total holding tax 13% of the ten months’ rental income

For holdings outside the city center where all the facilities are located, conservancy rate is fixed as 7% of ten months’ rental income of the holding while on the outskirts of the pourashava does not provide conservancy service and so do not collect taxes for it. Though there is no street light system outside the city center, still the dwellers have to pay for lighting rate to the local government.According to regulation, during reassessment the assessors should conduct door-to-door survey for actual specific information. Reassessment of properties occurs at five-year interval and an assessment list is prepared. The Chairman of the pourashava or any authorized officer on his behalf authenticates the list. The tax rules specify that the following details to be recorded during reassessment besides the current annual rental values:

Holding number Number of structure

Building dimensions Materials used in the structures Number of floors Use of the structures Proportion occupied by the owner

Three registers are maintained for tax administration in the pourashava. They are as follows: A valuation register An assessment register A demand register or payment register

According to the assessment list prepared in fiscal year 2001-02, the following Table 4.5 shows the amount of assessed tax by holding types in Manikganj Pourashava. But the Madhabdi Pourashava officials failed to provide any detail inventory of such type rather than they were interested to provide information from imagination, which were not taken into consideration for maintaining the study as a realistic one, not something ambiguous and doubtful.

Table 4.5: Inventory of Assessed Tax by Holding TypeSl. no

Holding Type Nos. Assessed Tax (Tk)

01 Residential Holding 8,091 21, 91,869.2502 Commercial Holding 747 11, 41,478.00

03 Government Owned Holding 86 11, 63493.7504 Industry 6 3, 19,731.0005 Welfare Institutions 108 -

06 NGOs 20 37,709.0007 Other 135 46, 63,571.00

Source: Manikganj Pourashava Office provided assessment list (2001-02)The above Table does not portray the actual picture rather than it reflects an approximate image. Because neither of the pourashavas has a list of all holdings within the jurisdiction. They do not have even a holding map.

Table: Rates of Tax by Service TypesPurpose of Tax Manikganj Madhabdi

Water 3% 0%Lighting 3% 3%

Conservancy 7% 2%Value of land and building 7% 7%

Source: Madhabdi Pourashava OfficeIn the Table 4.6, the holding tax rate including the value of land and building, conservancy, lighting and water rate of both Manikganj and Madhabdi Pourashavas are shown. In Manikganj, the rate has been fixed up completely according to the ordinance of 1977. It is prepared based on the ten months’ rental income. In case of Madhabdi, there is a deviation from the aforesaid ordinance and it is in the rate of conservancy. Here conservancy rate has been fixed up 2% instead of 7% because of being a pourashava of B category. As there is absence of piped water supply facility, in case of Madhabdi, water rate is nil.

Table 4.7: Taxation Scenario on HoldingPourashava Types of

TaxYears

2002-03 2003-04 2004-05

Manikganj Current 6, 77,684.53 12, 52,651.00 19, 37,360.00Due 10, 48,264.40 15, 04,125.00 23, 95,500.00

Madhabdi Current 37,199.00 69,530.00 10, 05,000.00Due 4, 76,995.00 10, 15,000.00 17, 26,390.00

Source: Manikganj and Madhabdi Pourashava OfficesFrom the Table it is apparent that due tax exceeds current tax, which reflects the inability and/or unwillingness to pay taxes. But the socio-economic condition of most of the inhabitants is not so miserable which can cause their inability to pay taxes. While investing the cause behind the unwillingness of the dwellers to pay taxes appeared as the basic cause behind such huge amount of due tax. Tax on Transfer of Immovable PropertyAccording to the Pourashava Model Tax Schedules-1985, the tax on transfer of immovable property may be levied at a maximum rate of one percent of the value of the deed of transfer excepting wills and gifts (other than a gift which amounts to Waqf-al-Aulad) to registered religious, charitable, sports or cultural institutions and transfer in discharge of legal debts.

Table 4.8: Taxation Scenario on Immovable PropertyPourashava Years

2002-03 2003-04 2004-05Manikganj 11, 64,313.50 26, 00,461.00 29, 75,390.00

Madhabdi 3, 21,100.17 8, 75,000.00 11, 33,000.00

Source: Manikganj and Madhabdi Pourashava OfficesTax on Erection and Re-erection of BuildingsThis tax may be levied at a rate not exceeding the rate as specified hereunder. This rate has been collected from Manikganj Pourashava.For temporary construction

At a flat rate of Tk. 20.00 Per constructionFor semi-pucca construction

1. Up to 1200 sq. ft floor area = Tk. 50.00 2. Above 1000 sq. ft and up to 1500 sq. ft = Tk. 75.00 3. Above 1500 sq. ft = Tk. 150.00

For pucca constructiona. Up to 1200 sq. ft floor area = Tk. 150.00 b. Above 1000 sq. ft and up to 1500 sq. ft = Tk. 250.00 c. Above 1500 sq. ft and up to 2000 sq. ft = Tk. 350.00 d. Above 2000 sq. ft = Tk. 450.00

There shall be no tax for re-construction of any building damaged due to natural calamity or for repair of any mosque, temple, churches, eid-gah or any other installation relevant with religious culture.

Table: Taxation Scenario on Erection and Re-erection of Buildings Pourashava Years

2002-03 2003-04 2004-05Manikganj 83,275.00 1, 32,000.00 1, 68,750.00

Madhabdi 66,200.00 82,680.00 87,990.00.00

Source: Manikganj and Madhabdi Pourashava OfficesFrom the above Table 4.9, the performance of tax on erection and re-erection of building sector is better in Madhabdi than that of Manikganj. Although the amount is more significant in case of Manikganj than that of Madhabdi. But we should bear in mind that the Manikganj is a pourashava of about 90,000 population where as Madhabdi contains about 40,000 population – just less than half. Mainly the houses of the dwelling units are predominantly made of tiles/C.I sheets. In the following Figure 4.1 the percentage of different types of roads in Manikganj Pourashava are shown.

Figure: Percentage of Different Types of Roads in Manikganj PourashavaTax on Professions, Trade and CallingsThis tax is levied on the professionals, trades and callings at the rates not exceeding the rate mentioned against each:(1) Company, firm and bank transacting business within the pourashava for profit or as a benefit society, not being registered co-operative society of which the paid-up capital is shown in the Table 4.10.

Table 4.10: Registration Fees against Various CapitalCapital (Tk.) Not exceeding Taka

(Per year)Less than 1,00,000 500.00

More than 1,00,000 but less than 5,00,000 750.00More than 5,00,000 but less than 10,00,000 1,000.00More than 10,00,000 but less than 25,00,000 1,250.00

More than 25,00,000 but less than 1 crore 1,500.001 crore and above 2,000.00

Source: Manikganj Pourashava Office(2) Firm of contractors or their agents, including individual contractor having financial transaction under terms of any agreement or contract should pay at the rate of Tk. 500 for first class contractor, Tk. 400 for second class contractor and Tk. 300 for third class contractor per year (Manikganj and Madhabdi Pourashava Offices).

Table 4.11: Taxation Scenario on Professions, Trade and CallingsPourashava Years

2002-03 2003-04 2004-05Manikganj 7, 08,300.00 6, 78,070.00 7, 38,000.00

Madhabdi 6, 86,800.00 7, 30,000.00 7, 75,000.00

Source: Manikganj and Madhabdi Pourashava OfficesTaxes on Cinema and Audio-Visual Show

The rate of levy on this tax will be maximum 15% on fees of admission collected from spectators to part or full exemption of this tax in case of shows on educational and charitable purposes.

Table 4.12: Taxation Scenario on Cinema and Audio-Visual ShowPourashava Years

2002-03 2003-04 2004-05Manikganj 48,000.00 49,500.00 51,000.00Madhabdi 34,543.79 35,000.00 41,000.00

Source: Manikganj and Madhabdi Pourashava OfficesTaxes in Vehicles other than Motor Vehicles and BoatsTax on different classes of vehicles and carriages may be levied in each case at a rate not exceeding the rate as specified hereunder:

Table 4.13: Tax Rate on Vehicles other than Motor Vehicles and BoatsType Not exceeding taka

(per year)Bi-Cycle 5.00

Hand Cart 15.00Bullock Cart 15.00

Push Cart 25.002-Wheeled Carriage 50.00

Cycle Rickshaw (hire) 50.00Cycle Rickshaw (private) 50.00

4-Wheeled Carriage 70.00Source: Manikganj Pourashava Office

Table: Taxation Scenario on Vehicles other than Motor Vehicles and BoatsPourashava Years

2002-03 2003-04 2004-05Manikganj 49,430.00 52,000.00 55,000.00

Madhabdi 84,000.00 96,000.00 92,000.00

Source: Manikganj and Madhabdi Pourashava Offices

Lighting RateOnly maintenance cost of the service (including proportionate cost of collection of the rate) may be recovered from beneficiaries to a maximum levy of 3% on the annual value of the lands and buildings.

Table: Taxation Scenario on Street LightingPourashava Years

Holding Tax

(Type)

2002-03 2003-04 2004-05

Manikganj Current 2, 45,523.07 2, 46,670.00 2, 51,000.00Due 3, 19,027.50 6, 98,000,00 11, 36,000.00

Madhabdi Current 15,234.00 25,000.00 36,400.00Due 1, 94,006.50 3, 65,000.00 8, 69,000.00

Source: Manikganj and Madhabdi Pourashava OfficesIt is already mentioned that in respect of street-lighting coverage, the dwellers of Madhabdi are in more advantageous position than that of Manikganj. But their response against this service is very inappreciable. From the Table 4.15 this truth is revealed quite clearly. Most of the people do not pay street-lighting tax.Conservancy RateOnly maintenance cost of the service (including proportionate cost of collection of the rate) may be recovered from beneficiaries to a maximum levy of three percent on the annual value of the lands and buildings.

Table 4.16: Taxation Scenario on ConservancyPourashava Holding

Tax(Type)

Years2002-03 2003-04 2004-05

Manikganj Current 52,930.00 59,289.00 65,575.00Due 1, 53,742.04 1, 07,603.00 1, 39,320.00

Madhabdi Current 10,177.00 18,610.00 29,370.00Due 3, 02,524.00 3, 90,000.00 7, 81,000.00

Source: Manikganj and Madhabdi Pourashava OfficesIn case of taxation on conservancy, the ratio between current and due for Manikganj is about 1:3 but for Madhabdi is 1:30 which mean that the inhabitants of Madhabdi are not habituated with the culture of paying tax properly.Water RateIt is already mentioned in the earlier section that between these two pourashavas only the inhabitants of Manikganj enjoy the facility of proper supplied water. The water supply section is a separate and self-dependent wing of the institution and the income and expenditure of this section is dealt separately from other sections of the pourashava. The water supply office has its own accounts of income and it depends from its own income and makes its own budget independently. The pourashava office subsidizes water supply section whenever required. The water supply office fixes its own rates, distributes bills among the users and collects revenue employing their own staff.But in Madhabdi, the scenario is totally different. Here the people have to depend totally on tubewells and other sources except piped water. They have already submitted a proposal including Project Concept Paper (PCP) to the concerned ministry, which is under consideration according to the Chairman.

Table 4.17: Water Rate ScenarioPourashava Water Tax

(Type)Years

2002-03 2003-04 2004-05Manikganj Current 2, 55,720.64 1, 58,175.00 1, 52,819.00

Due 3, 81,371.71 4, 86,430.00 5, 65,225.00

Source: Manikganj Pourashava OfficeFees for Slaughtering of Animals The basic objectives of collecting fees against slaughtering of animals are to collect fund for cleaning purpose. Because after slaughtering the waste and debris which are left create serious hygienic problem. There is a necessity of deploying workers to remove them and purchasing products like bleaching powder to lessen environmental pollution. This fee may be levied on slaughtering of animals for commercial or business purposes only at a rate not exceeding the rate as Tk. 5 for every goat or sheep, Tk. 10 for every cow and Tk. 15 for every buffalo.According to the above rate, the amount of tax collection in this sector of three consecutive financial years from 2002-03 to 2004-05 of Madhabdi and Manikganj are cited in Table

Table 4.18: Taxation Scenario on Slaughtering of AnimalsPourashava Years

2002-03 2003-04 2004-05Manikganj 20,000.00 24,570.00 29,500.00

Madhabdi 3,175.00 4,500.00 5,100.00

Source: Manikganj and Madhabdi Pourashava OfficesVehicle RegistrationManikganj Pourashava earns revenue from registration of vehicles. There is a fixed fee for the registration of each type of vehicle in the schedule. The vehicle owner has to pay this fee to get vehicle license from the pourashava on a yearly basis. This license is also in a loose paper which difficult to preserve. Within the pourashava boundary there are 2,700 registered rickshaws (Manikganj Pourashava Office). But the pourashava office was not able to provide the actual income reports on this sector. The situation of Madhabdi in case of vehicular registration is no better than that of Manikganj. Moreover, they have failed to provide the actual or tentative number of the prevailing rickshaws.Income from Approval of Building PlansBoth of our selected pourashavas earn considerable amount of revenue from approving the plans of building. A fee is fixed by the pourashava for the approval of the building plans for construction of new buildings. But the engineering section of both of the pourashavas showed serious reluctance to provide information about the amount due to unknown reasons.Miscellaneous Sources of IncomeA pourashava is a very dynamic local level organization. Other than the aforesaid sources it also collects money from various sources like value added tax (VAT), advertisement tax, issuance of death and birth certificate, road cutting tax, ARV (anti rabbis virus) fund, advance payment, issuance of various certificate and selling of different types of forms etc. The income of Madhabdi Pourashava and Manikganj Pourashava from such sources are mentioned in Table.

Table: Miscellaneous Sources of Income Sources of Income Pourashava Years

2002-03 2003-04 2004-05

AdvertisementManikganj 9,003.00 5,600.00 8,750.00

Madhabdi 2,500.00 3,750.00 4,000.00

Sources of Income Pourashava Years2002-03 2003-04 2004-05

TransportationManikganj 1,260.00 2,750.00 3,430.00

Madhabdi 4,000.00 5,350.00 6,000.00

Advance AdjustmentManikganj 8,830.00 9,000.00 3,500.00

Madhabdi 84,027.00 1, 03,000.00 1, 37,000.00

Vat and Income TaxManikganj 1, 22,168.00 1, 05,000.00 1, 25,451.00

Madhabdi 35,000.00 39,000.00 43,000.00

Birth/Death CertificateManikganj 27,725.00 20,900.00 23,550.00

Madhabdi 3,120.00 3,750.00 4,200.00

Land SurveyManikganj 8,750.00 10,000.00 50,000.00

Madhabdi 2,500.00 3,000.00 4,500.00

Income from Graveyard/ Burning Place

Manikganj 50,000.00 2, 00,000.00 4, 00,000.00

Madhabdi 15,750.00 17,000.00 19,450.00

Road CuttingManikganj 87,700.00 1, 00,000.00 3, 00,000.00

Madhabdi 2, 26,943.36 2, 00,000.00 2, 20,000.00

Rent of Road RollerManikganj 89,000.00 1, 00,000.00 3, 00,000.00

Madhabdi 18,000.00 25,000.00 30,000.00

Miscellaneous FineManikganj 7,500.00 10,000.00 25,000.00

Madhabdi 1,320.00 3,000.00 50,000.00

Rent of Town HallManikganj 4,000.00 5,000.00 10,000.00

Madhabdi - - -

Income from Issuance of Certificate

Manikganj 8,345.00 15,000.00 20,000.00

Madhabdi 27,00.00 20,000.00 25,000.00

Income from Selling of Forms

Manikganj 53,235.00 60,000.00 1,00,000.00

Madhabdi 10,945.00 60,000.00 65,000.00

Madhabdi - - -

Lease from Public Toilet

Manikganj 90,469.00 1, 50,000.00 2, 00,000.00

Madhabdi 28,000.00 40,000.00 30,000.00

Sources of Income Pourashava Years2002-03 2003-04 2004-05

Rent from Road Roller and Mixture

Manikganj 89,000.00 1, 00,000.00 3, 00,000.00

Madhabdi 1, 32,000.00 1, 60,000.00 2, 00,000.00

Selling of Tender Schedule

Manikganj 51,050.00 1, 00,000.00 2, 59,000.00

Madhabdi 2, 37,000.00 2, 10,000.00 2, 25,000.00

Lease of Bus stand/Terminal and Ferry ghat

Manikganj 3, 40,270.00 2, 70,000.00 5, 50,000.00

Madhabdi 15,880.00 17,500.00 23,000.00

Issuing of Miscellaneous Certificate

Manikganj 8,345.00 15,000.00 20,000.00

Madhabdi 2,700.00 20,000.00 25,000.00

Source: Manikganj and Madhabdi Pourashava OfficesAllocation of Government FundGovernment grants include all types of supportive assistance from the central government comprises normal or recurrent grant, octroi, compensation grant, works program grant and special project grant. To receive this grant Manikganj Pourashava shows around 50% tax collection on paper where the actual rate of collection is 34% (Rural and Urban Development Organization-2004).Different types of grants are distributed based on different criteria depending on the category of the pourashavas. The grants are allocated mainly for paying a portion of the salaries and compensation of local employees, honorariums of elected representatives, maintenance of infrastructures and development of roads, culverts, drains and canals etc. The pourashava grants are known as follows:

1. Special salary grants2. Compensatory grants for special purposes liker mosquito control, education programs,

medicine and injections etc.3. Octroi compensation grants4. Urban Works Program Grants, and5. Special development project grants

Urban Works Program (UWP) grants has been the primary development grants for the urban local bodies in Bangladesh and maintenance of infrastructure, helping the needy groups with employment opportunities and training participation. Special development grants are distributed according to the needs of maintenance and development of infrastructures in pourashavas. Government funding is very important for proper functioning of the local level urban government bodies. Pourashava being a local level organization, the source of income for the pourashava is very limited. So, it is very difficult to perform development activities and provide basic utility services and civic amenities without adequate government funding under the prevailing condition.Generally, the government grants funding for the pourashava in two sections they are:

1. In revenue account2. In development fields

The government funding for Madhabdi and Manikganj Pourashavas in three financial years from 2002-03 to 2004-05 in these two sectors are stated in Table 4.20 and 4.21.

Table: Government Grants in Development FieldPourashava Years

2002-03 2003-04 2004-05Manikganj 72,00,000.00 16,00,000.00 2,00,00,000.00Madhabdi 58,00,000.00 64,00,000.00 1,01,00,000.00

Source: Manikganj and Madhabdi Pourashava OfficesTable: Government Grants in Revenue Field

Pourashava Years2002-03 2003-04 2004-05

Manikganj 3,00,000.00 3,20,000.00 2,60,000.00Madhabdi 1,05,000.00 1,50,000.00 1,00,000.00

Source: Manikganj and Madhabdi Pourashava OfficesMajor Fields of ExpendituresAs pourashava is the local level government body, the poura-administration is exclusively responsible for the development of the pourashava. The incomes that accrue from tax and revenue collection and the government grants are used for the development of the pourashava. Here the fields of expenditures of pourashava are very widened and diversified as the results of its manifold duties. The expenditures of pourashava generally belong to two categories: revenue account and development account.Expenditures in revenue account mainly come from the income of pourashava i.e. tax and revenue collection. Sometimes government grants, some funding in revenue account for special purposes such as increment of the salary of employees, relief for poor and destitute. The fields of expenditures in revenue account for Manikganj and Madhabdi Pourashavas are depicted below.Expenditures on Street Lighting Safety and security are becoming more alarming issues in our day-to-day life. Due to unemployment and political unrest, anti-social activities are increasing. Many of these are committed at night. And the absence of street lighting plays the role of catalyst. Ensuring adequate street lighting facility can improve the situation. In Table 4.22 the expenditures on street lighting facility of both of the two selected pourashavas are cited for three consecutive fiscal years from 2002-03 to 2004-05.

Table 4.22: Expenditures on Street LightingPourashava Years

2002-03 2003-04 2004-05Manikganj 1,13,604.00 2,50,000.00 3,20,800.00

Madhabdi 1,57,997.00 1,63,000.00 2,00,000.00Source: Manikganj and Madhabdi Pourashava Offices

Figure: Expenditures on Street Lighting (actual)Figure simply portrays the miserable condition of the dwellers of Manikganj Pourashava in case of street lighting facilities. Here most of the streetlights poles remain ourt of orders due to proper maintenance and the pourashava authority does not seem very cautious and aware about that. On the other hand, in respect of population density and area, Madhabdi Pourashava should think to allocate more funds for providing better services.Expenditures for Road MaintenanceAlthough there is lack of clarification about the responsibility of road maintenance between D.C office and pourashava, the pourashava usually allots fund for road maintenance from the development budget. The expenditures on road maintenance of last three financial years for Manikganj and Madhabdi Pourashavas are given in table 4.23.

Table: Expenditures on Road MaintenancePourashava Years

2002-03 2003-04 2004-05Manikganj 16,50,794.00 23,50,000.00 26,00,000.00

Madhabdi 8,31,779.00 9,65,000.00 11,32,500.00Source: Manikganj and Madhabdi Pourashava Offices

Expenditures for Water SupplyAnother name of water is life. For existence every human being needs water and the availability of pure supplied water is his civic right. In Table 4.24 the expenditures of water supply in Manikganj for last three fiscal years are provided.

Table: Expenditures on Water SupplyPourashava Years

2002-03 2003-04 2004-05Manikganj 9,27,217.00 9,64,347.00 10,15,000.00

Source: Manikganj Pourashava Office

Figure 4.3: Various Expenditures for Water Supply PurposeFrom the Figure, we can see that in 2002-03 the highest amount of money was spent for repair and maintenance purpose and it was about Tk. 7.23 lakhs. Because due to poor voltage of supplied electricity the water treatment plant was badly damaged.As there is no piped water supply system has been introduced in Madhabdi, there is no question of expenditure of the pourashava regarding this service.Expenditures for ConservancyEvery inhabitant of the pourashava desires to have a healthy decent pourashava. For this purpose all pourashavas should try for improving the quality and frequency of conservancy service. In Table 4.25 we can see the expenditures on conservancy of two selected pourashavas for three consecutive years from 2002-03 to 2004-05.

Table 4.25: Expenditures on ConservancyPourashava Years

2002-03 2003-04 2004-05Manikganj 13,32,675.00 16,50,000.00 19,00,000.00Madhabdi 8,78,000.00 9,50,000.00 10,25,000.00

Source: Manikganj and Madhabdi Pourashava Offices

Figure: Expenditures for ConservancyFrom the above-mentioned Figure, we can see that the Madhabdi Pourashava authority is not really sincere to emphasize the importance of conservancy service. In the year 2001-02, 2002-03, 2003-04 the actual expenditures were Tk. 4,10,625.00, Tk. 3,75,393.00 and Tk. 4,20,635.00 respectively which means that the average expenditure is around Tk. four lakhs

and it is in the trend of constant but population and demand are increasing day by day. On the other hand, comprising eight times bigger area and more than double of the population than that of Madhabdi, the scenario of expenditures on conservancy in Manikgaj is not appreciable. In 2001-02, 2002-03, 2003-04 the actual expenditures were Tk. 7,95,600.00, Tk. 10,12,000.00 and Tk. 10,26,380.00. The amount of 2002-03 is bigger than that of 2001-02 because in 2002-03 eight new sweepers were recruited according to the pourashava.Expenditures for Wages and Salaries Wages and salaries constitute a major portion of expenditure for all pourashavas each year. These include payment for Chairman and Commissioners and payment for employees of the pourashavas as well. The amounts of expenditure for both of the selected pourashavas in this sector in three financial years from 2002-03 to 2004-05 are given in the Table 4.26.

Table: Expenditures for Wages and Salaries of StaffSources of expenditure Pourashava Years

2002-03 2003-04 2004-05 Payment for Chairman & Commissioners

Manikganj 2,08,800.00 2,15,000.00 2,19,750.00Madhabdi 86,350.00 1,05,000.00 1,29,200.00

Payment for employees Manikganj 40,60,882.00 44,75,000.00 52,00,000.00Madhabdi 14,62,670.00 17,50,000.00 16,83,588.00

Source: Manikganj and Madhabdi Pourashava OfficesExpenditures for Utility ServicesBasic utility services as gas, piped water supply is generally missing in Madhabdi Pourashava. Drainage and sanitation services are provided to the poura-dwellers in a limited extent. Besides pourashava has to spend some money in order to provide basic health care, medicine and immunization facilities to the dwellers. In Manikganj, the inhabitants are in favorable position in case of basic utility services. Manikganj is connected with national gas gridline to a limited portion. It provides piped water supply to a considerable portion of the dwellers. Although the drainage and sewerage facility are not very appreciable but still it serves purpose to a certain extent.

Table: Expenditures for Providing Utility ServicesSources of expenditure Pourashava Years

2002-03 2003-04 2004-05Medicine and Treatment

Manikganj 12,950.00 15,000.00 20,000.00Madhabdi 6,350.00 9,000.00 12,000.00

EPI Manikganj 13,716.00 40,000.00 50,000.00Madhabdi 4,500.00 6,000.00 12,000.00

Mosquito Control & Drain Cleaning

Manikganj 39,577.00 40,000.00 50,000.00

Madhabdi 20,300.00 95,000.00 1,50,000.00

Payment for Sweepers Manikganj 66,600.00 75,000.00 1,00,000.00Madhabdi 3,33,853.00 4,75,000.00 7,20,000.00

Purchase of Apparatus for Waste Disposal

Manikganj 7,888.00 10,000.00 1,50,000.00Madhabdi 16,890.00 15,000.00 10,000.00

Source: Manikganj and Madhabdi Pourashava OfficesExpenditures for Relief PurposesMadhabdi is not a flood prone area and other types of natural disaster do not assail this pourashava in a regular basis. As a result, the expenditure on relief purpose in last three years is very negligible. Only in the year, 2000-01, Tk. 15,000.00 was granted for this purpose,

which is quite limited to meet the demand. But it is imprudent that there is no provision of expenditure in the of 2002-03 or later on for relief purpose because natural disasters can attack any time without prior warning and the lack of fund for relief will add to the misery of the distressed people. It is well known to all that geographically Manikganj is very prone to flood. Because most of the land is within the flood level. In recent past, the inhabitants had to experience the cruel character of recurring floods. But it is really ridiculous that the poura authority seems not to be worried at all regarding the issue because last fund for facing flood was allocated in the year 2000-01 and it was only Tk. 45,000.00. And after this year there was no allocation in the budget for facing natural calamity.Expenditure for General Establishment of the PourashavaEach year there is some expenditure for the general establishment of every pourashava. These include vehicle purchasing or repairing, fuel, telephone, electricity, streetlight etc. The amounts of expenditures in these sectors in three financial years from 2002-03 to 2004-05 of Madhabdi and Manikganj Pourashavas are stated in Table 4.28.

Table: Expenditure for General Establishment Sources of expenditure Pourashava Years

2002-03 2003-04 2004-05Vehicle purchase/Repairing/Fuel

Manikganj 76,386.33 1,50,000.00 2,00,700.00Madhabdi 60,590.00 65,000.00 73,000.00

Telephone Manikganj 45,658.50 50,000.00 69,000.00Madhabdi 11,598.00 8,500.00 28,000.00

Electricity/Street Light Manikganj 1,13,604.00 2,50,000.00 2,80,935.00Madhabdi 1,57,997.00 1,70,000.00 2,00,000.00

Source: Manikganj and Madhabdi Pourashava OfficesAccompanying Expenditures of the PourashavaBeing an institution, accompanying expenditures of the pourashavas include expenditures regarding stationery purchase, furniture/machinery purchase, and dress for fourth grade employees, advertisement bill, payment to government for lease of hats, distribution of vulnerable group feeding (V.G.F) card and loan for employees etc. The amount of expenditures in these sector in three financial years from 2002-03 to 2004-05 of Manikganj and Madhabdi Pourashavas are provided in Table 4.29

Table: Accompanying Expenditures Sources of expenditure

Pourashava Years2002-03 2003-04 2004-05

Stationery/News Paper Bill

Manikganj 33,181.00 80,000.00 1,00,000.00Madhabdi 72,075.00 1,03,000.00 1,28,500.00

Furniture/Machinery

Manikganj 2,35,720.00 1,00,000.00 3,00,000.00Madhabdi 2,22,745.00 20,000.00 1,00,000.00

Advertisement Bill

Manikganj 40,012.00 40,000.00 60,000.00Madhabdi 62,655.00 65,000.00 80,000.00

Refreshment Bill

Manikganj 12,434.00 50,000.00 1,00,000.00Madhabdi 3,570.00 4,900.00 5,500.00

Payment to Govt. for Lease of hat

Manikganj 77,775.00 1,55,000.00 2,05,000.00Madhabdi 54,650.00 5,80,756.00 3,70,000.00

Distribution of V.G.F Card

Manikganj - - -Madhabdi 1,560.00 2,500.00 4,000.00Manikganj 1,57,000.00 2,10,000.00 5,00,000.00

Sources of expenditure

Pourashava Years2002-03 2003-04 2004-05

Loan for Employees

Madhabdi 2,000.00 1,00,000.00 5,00,000.00Madhabdi 2,13,227.00 2,05,000.00 2,00,000.00

License Plate of Rickshaw, Van

Manikganj 16,500.00 20,000.00 50,000.00Madhabdi 6,650.00 10,000.00 25,000.00

Source: Manikganj and Madhabdi Pourashava OfficesExpenditure in Development FieldPourashava is the responsible government body for the infrastructure maintenance and development as well as other pertinent development programs within the jurisdiction of the pourashava. The sources of income for these development activities are basically come from revenue account and government’s funding. The expenditures for infrastructure building as well as maintenance and development programs in three fiscal years from 2002-03 to 2004-05 are given in the following sections.Expenditure for Infrastructure Maintenance and DevelopmentA major portion of revenue of both of the pourashavas is spent for infrastructure maintenance and development purpose every year. Infrastructure development works include road construction and maintenance; drain construction, bridge and culvert construction and maintenance etc. The amounts of expenditures in these sectors in three financial years from 2002-03 to 2004-05 of Manikganj and Madhabdi Pourashavas are in the Table 4.30

Table: Expenditures on Infrastructure Maintenance and DevelopmentPourashava Years

2002-03 2003-04 2004-05Manikganj 60,40,544.00 50,00,000.00 75,00,000.00

Madhabdi 97,57,607.42 1,35,88,989.00 1,99,47,698.00

Source: Manikganj and Madhabdi Pourashava OfficesExpenditure for Development PurposeApart from the expenditures on infrastructure maintenance and development, other expenditures for development programs of a pourashava include development of hat and bazar, construction of markets etc. The amounts of expenditures in these sectors in three financial years from 2002-03 to 2004-05 of Madhabdi and Manikganj Pourashavas are mentioned in the

Table: Expenditures on Various Development ActivitiesSources of expenditure

Pourashava Years2002-03 2003-04 2004-05

Development of hat and bazars

Manikganj 5,00,000.00 7,00,000.00 10,00,000.00Madhabdi 2,00,000.00 3,00,000.00 4,50,000.00

Construction of Market

Manikganj 33,48,550.00 20,000,00.00 42,00,000.00Madhabdi 7,00,000.00 10,000,00.00 15,00,000.00

Source: Manikganj and Madhabdi Pourashava OfficesMiscellaneous ExpendituresIn general other fields of expenditure of a pourashava includes expenditure on collection of taxes, plantation and maintenance, donation for religious and cultural institutions, land development taxes, expenditures of audit, expenditures of cases, celebration of national days, sports and cultural programs, emergency relief, revenue collection expenditures etc. The amount of expenditures of our selected pourashavas in these sectors of last three financial years are given in Table 4.32

Table Miscellaneous Expenditures Sources of expenditure

Pourashava Years2002-03 2003-04 2004-05

Land Development Tax

Manikganj 1,274.00 5,000.00 1,00,000.00Madhabdi 487.75 5,100.00 2,000.00

Cases Manikganj 11,011.00 20,000.00 1,50,000.00Madhabdi 14,370.00 19,000.00 20,000.00

Celebration of National Days

Manikganj 89,438.00 1,15,000.00 1,20,000.00Madhabdi 4,000.00 60,000.00 1,00,000.00

Telephone BillManikganj 45,658.00 50,000.00 1,00,000.00Madhabdi 8,216.00 15,000.00 20,000.00

StationeriesManikganj 33,181.00 80,000.00 1,00,000.00Madhabdi 97,712.00 80,000.00 2,00,000.00

Source: Manikganj and Madhabdi Pourashava Offices

CHAPTER-5PROSPECTS OF FULL COVERAGE OF SERVICE

The prime motive behind the setting up of pourashava is to ensure availability of civic services to the urban dwellers. Thus, it is the most important institution of achieving desired municipal performance as we have mentioned early in this thesis. The better the service is ensured, the higher the level of performance is achieved. But to provide better utility services and civic amenities are not easy to be carried out. The policy makers, poura-officials i.e. public sector, and the inhabitants of the pourashava i.e. the private sector, should have strong will and commitment for such purposes. Because it is extensively a two way participatory approach where both sectors should be sincere on responsibilities and must perform respective duties. In this chapter cost of providing designated services to the residents is assessed.Expenditures for Satisfactory ServicesEvery person who pays tax demands the basic services and amenities at a satisfactory level and it is his constitutional right. Before planning to provide services, we should think about the required cost behind pleasing services. But in many cases it is not possible for the pourashavas to manage the capital cost required for providing the services to greater extent, so we will consider here only upon possible running cost. But to determine the actual running cost demands complex analysis because there are many inter-related parameters, a simplistic approach has been applied here to get an idea about the range of possible expenditures.Expenditures for Satisfactory Conservancy ServicesMadhabdi Pourashava does not provide garbage collection and disposal facility to all dwellers rather it provides the facility only to the market area. As a result, the waste is disposed by most of the dwellers of the pourashava through individual effort and this causes the unregulated dumping of solid wastes in various places. This unregulated solid disposal results environmental pollution and other problems like-

Spreading of odor Creation of nuisance Spreading of pathogens and germs Creation of visual obstruction

For providing conservancy service to about 90% of the population madhabdi Pourashava requires to engage about 20 sweepers more where as currently 40 sweepers are serving about 65% of the population. These sweepers will demand about Tk. 3.5 lakhs annually as a salary. Here the monthly salary has been considered Tk. 1,500 per sweeper. According to the Conservancy Department of the pourashava, they immediately require at least one truck, four trolleys and 20 dustbins of which the approximate cost is about Tk. 2 crores, to provide the conservancy coverage up to 90% of the total population and the pourashava will have to spend about Tk. 1.5 lakhs more for fuel and maintenance cost as they are spending about two lakhs taka annually as fuel and maintenance cost against one truck and three trolleys.Manikganj Pourashava authority has erected 18 dustbins only within the core area of the pourashava, which is already mentioned in the earlier section. The number of dustbins available is absolutely inadequate for proper waste management. Wastes of those dustbins are not collected properly. As there is no dustbin available beyond the core area, the dwellers of the pourashava are to simply dispose waste here and there severely vitiating the environment. Even the pourashava authority dumps the collected wastes scattered in low lands without any prior and comprehensive investigation about the prospective impact of such dumping. This may lead to serious health and environmental hazard. Thus, there exist certain serious problems in arena of waste disposal. No Community-Based Organization (CBO) has been formed to carry out this task. Although the NGOs of mainstream like ASA, BRAC, Proshika etc. have been operating in Manikganj Pourashava for more than last ten years, they also have by passed this one of the highest prioritized facilities. While discussing with the concerned officials of BRAC, they informed that the reason of overlooking to invest against conservancy service is the risk of low return and insufficient response. Because due to the lack of awareness most of the citizens still do not understand properly the importance of hygiene.Geographically Manikganj Pourashava is not in very advantageous position because there are different types of topography with diversified slopes. Moreover, agro-based nature is very prominent here. So, it is very difficult to provide conservancy service to 90% population. However, through experience and perception Conservancy Department of the pourashava informed that they require at least two trucks, four trolleys of which approximate fuel and maintenance cost will be about two lakhs taka under the current trend of expenditure. Moreover, they will have to engage 30 sweepers to increase the service coverage up to 80% of the population spending about Tk. 5.5 lakhs annually as salary. Expenditures for Satisfactory Water Supply FacilityWater is the essence of life. Access to piped water supply is a basic right of every dweller and the pourashava is legally liable to provide the service. But Madhabdi Pourashava could not yet provide this service to the subjects. The poura-dwellers are dependent on tubewells and water tanks for mitigating their water demand. The Engineering Section of the pourashava informed that they require at least two pumps with capacity of 90 m3/h along with two reservoirs of 350m3 and a overhead tank of 250 m3 capacity. Additionally they also require a service pipeline of 25 km. According to the Data Book 2002 of Department of Public health engineering (DPHE) the estimated cost is about Tk. 1.5crores which can be possible to accommodate through the central government’s fund or assistance of development partners like DANIDA, CARE etc expecting to provide service coverage about 40% of the total population. But as operating and maintenance cost they would require at least Tk. 15 lakhs because in this pourashava there are 42 staff serving in water supply plant for whom about Tk. 14 lakhs is spent annually as salary. Because in Manikganj Pourashava there are 42 staff for whom annuallly about Tk. 13 lakhs is being spent as salary. Butt in Madhabdi there should be at least 15 staff for the proposed water supply plant for whom proposed expenditure could be Tk. 5 lakhs. Expected electricity bill would be at least Tk. 5 lakhs

because for that Manikganj Pourashabva has to spend about Tk. 20 lakhs annually. But as the capacity of the entire infrastructure is about quarter of that of Manikganj, for connection of water line, repair and maintenance of pump house and pipe line, cost of chemicals for keeping the water pollutants free they will require at least Tk. 5 lakhs.We have already mentioned that agro-based character is prominent in case of Manikganj Pourashava. Here the majority of the settlements have concentrated in the Ward nos. 1, 5, 6 and 7. In these wards the average density is about 1,500 - 3,500 persons per sq. km. Most of the agricultural lands have concentrated in the Ward nos. 2, 3, 4, 8 and 9. In these wards the average density is about 500-950 persons per sq. km (Population Census-2001). As the piped water supply is really expensive, the areas with higher density should be prioritized. In Manikganj, the coverage of the piped water supply has been extended only about 25% of the total population and 30% of the total area. Thus, the authority cannot fulfill the demand. According to DPHE, Manikganj Pourashava requires about Tk. 4 crores to increase the supply coverage about 35,000 populations, which is about 70% of the total population. In addition they will have to engage at least 20 staff more. For their salaries, the pourashava needs at least Tk. 7.5 lakhs Here we are considering only lower level staff like pump operators, mechanics etc. Under the current rate their average salary is about Tk. 2,500 – 3,000 per month. Electricity bill is a very significant expenditure of water supply sector. Under the current trend of operation Manikganj Pourashava has to pay on an average Tk. 20 lakhs as electricity bill to REB. So, for greater extent of service, it will have to pay about Tk. 10 lakhs more as electricity bill. In addition possible increasement of water line connection charge, repair and maintenance fees of pipeline and pump house, replacing cost of iron and arsenic sludge will be at least Tk. 6 lakhs more. Here one thing should be again clarified that although the current pump supplies such an amount of water with which 50% population can be served but the unscrupulous users waste a mentionable amount of it as system loss. Thus, there exists huge wastage of public property, which must be prevented at any rate through proper application of some strict measures. No generator is equipped with the plant so as to ensure incessant supply of water. For this reason, supply is being hampered during the period of load shedding. There is no arrangement to accommodate fire hydrant in the network of water mains, which could be used in extinguishing fire by the fire service. The condition is miserable in the areas, which are beyond the reach of municipal water supply system. This situation is being aggravated due to the abnormal presence of arsenic and iron in ground water.

Figure: Demand and Collection of Water Supply Sector in Manikganj Pourashava

From the above Figure 5.1, we can see that the total demand for water supply to the dwellers of the pourashava is increasing in parallel with the total collection. But the difference between the amount of collection and demand remains almost same in the fiscal years 2002-03, 2003-04 and 2004-05, which means that a certain group of people is showing reluctance to pay the bill. According to the poura-officials these are local influential people. As Chairmanship is totally a political post, in most cases the Chairman tries to facilitate his supporters and like-minded people. So, it has become inconvenient to take any legal measure against them.Expenditures for Satisfactory Street Lighting FacilityStreetlights are really important for ensuring safe movement of the poura-dwellers at night. Moreover, it can help a lot to maintain law and order in the pourashava. At present there are only 469 streetlight points (Engineering Section of the pourashava) along the roads of the Madhabdi Pourashava, among whom less than 50% is active due to poor maintenance, negligence and corruption. These lights serve only the central part of the pourashava. But being an industrial area, there should be more streetlights on the roads because many industries run during night even late night. According to the Engineering Section of the pourashava, streetlight points or poles have provided 75% of the population. But due to poor maintenance and monitoring only 50% of the inhabitants get the actual service. So, to provide proper street lighting service to 90% of the population, the pourashava will require approximately 100 new poles/points about Tk. 40,000 as electricity bill to REB and Tk. 10,000 for replacement of lights and fixtures. Being a pourashava of about 44 sq. km, Manikganj Pourashava has only 1,548 street light points. It covers only 35% of the total area and 60% of the total population (Engineering Section of the pourashava). The quality of that lighting facility is not sufficient in consideration of demand. Poor and irregular maintenance deteriorates the quality of service. Only about 40% of the population enjoys the proper service.So, to provide proper street lighting service to 80% of the population, the pourashava will require about 650 new poles/points spending about Tk. 3 lakhs as electricity bill to REB and Tk. 50,000 lakhs for replacement of lights and fixtures. Expenditures for Satisfactory Roads MaintenanceAccording to the Engineering section of Madhabdi Pourashava Office, in respect of total area road network is extended to about 70% of the total area. But the road network suffers from the lack of proper planning. There is absence of proper alignment. In many cases there are different types of width prevailing in the same road. But as LGED has taken many projects especially on road network planning purpose in Manikganj, uniform width has been maintained as much as possible throughout every road-whether primary, secondary or tertiary. However, most of the roads of both the pourashavas are poorly maintained. There is no routine maintenance and carpeting system resulting a lot of sufferings to the users.

Figure: Expenditure for Road Maintenance

In Figure, the expenditures on construction and maintenance of katcha and bamboo foot bridges are provided. It is revealed that at present rate Manikganj Pourashava is spending about Tk.18 lakhs where as Madhabdi Pourashava is spending about eight lakhs taka. While discussing with the Engineering Section of Manikganj Pourashava, they have informed that they require about Tk. 20 lakhs more annually providing better services regarding road maintenance according to the current trend of expenditures. In case of Madhabdi the demanded amount was annually about five lakhs taka more.Cumulative Assessment of Required Funds for Satisfactory ServicesIn the previous sections it is tried to assume the realistic possible required fund for service to satisfactory extent. But to get an idea about required fund a cumulative assessment can be very useful. In the Table mentioned below a cumulative assessment of required funds of conservancy, water supply, street lighting and road maintenance has been provided. Here the data has been collected from the required expenditure of individual services.

Service Service coverage (in respect of population) Required funds(in lakh taka)Current Expected

Manikganj Madhabdi Manikganj Madhabdi Manikganj MadhabdiConservancy 50% 65% 80% 90% 7.5 5Water supply 25% 0% 70% 40% 24 15Street lighting 60% 75% 90% 90% 3.5 0.5Road maintenance

20 5

Total required funds 55 25.5Sources of Fund for Satisfactory Services

For providing services at an acceptable level, the pourashava obviously requires more funds. But in pourashava the major sources of income is not very diversified and widened rather than limited. So, the poura-authority should take measures to improve the scenario of tax collection performance from the prevailing sources as well as adopting some logical and realistic modifications of existing rules and procedures, which are described in this section.Proper Tax Collection

Figure: Due Tax Scenario of Manikganj and Madhabdi Pourashavas

The amount of due tax is the highest in the fiscal year 2001-02. For Manikganj the actual due tax of this year was about Tk. 34 lakhs and for Madhabdi it was about Tk. 15 lakhs. Incidentally, in this year there was no elected Chairman in both of the pourashavas. So, the personnel involved with tax related activities failed to provide quality service due to lack of proper guidelines as well as supervision and monitoringDue tax is the most important constraint of becoming any pourashava financially self-sufficient. From the above table, it is revealed that on an average there are more than Tk. 25 lakhs due in Manikganj and in case of Madhabdi, it is about Tk. 10 lakhs. This due tax includes taxes on holding and land, conservancy, lighting and water supply as well. Failure of the pourashavas to collect tax properly is the most important hindrance for solving fund problem and providing reasonable service. If the inhabitants pay their tax regularly, the fund problem of the pourashava can be easily solved. But for some reasons both of the pourashavas have failed to collect tax properly. They are as follows:A. Reluctant Attitude of the Pourashava Officials towards Taxpayers

a) The rules provide a rebate of 10% if the entire tax is paid within the first quarter and a 5% rebate if the quarters are paid within that quarter. A Tk. 55 penalty is imposed on every delinquent tax. Taxpayers are supposed to pay the taxes within the year the tax is meant for. He can pay any arrear tax with a 5% annual surcharge attached with that. In Manikganj the tax rebate is applied to regular taxpayers but the penalty has never been enforced. So, people have developed a tendency of not paying the taxes over the years and very often from generation to generation.

b) In pourashava, Chairmanship is totally a politically arranged post. Naturally due to fear of loosing in the election the Chairman is not very interested to take any strong stand to collect due taxes and revenues. Rather, he very often lowers the assessed amount of tax after receiving applications to reassess the taxes. Even legal action is not taken against the tax defaulters for becoming more popular and ensuring his chair safe and sustainable.

c) The pourashava staff, i.e. the tax collector, license inspector etc. are reluctant in discharging their duties and responsibilities. They do not go to the tax payers for collecting tax by knocking their doors and motivate them to pay tax in time rather they are reluctant about tax collection. One reason behind such attitude is the pressure on them from the elected bodies and their attitudes. Another reason is that the big defaulters are the influential people of the society but they are local as well as very ordinary people. Very often they are seen as financially insolvent. So, those influential people get an opportunity to manipulate them through illegal financial and social support.

d) Another very common complain against Tax Section of both of our selected pourashavas is corruption because they hardly take any legal measure against defaulter even for those who are very general. Very often the staff proposes the dwellers to undergo through mutual understanding process by having a win-win situation.B. Negative Attitude of Pourashava DwellersAfter observing scenario of due and current tax, it is evident that the general mass is not interested to pay taxes. The reasons behind this attitude of the people can be summarized as follows:

a) In Manikganj Pourashava a considerable part of the property owners are poor. The economy is stagnant and its dependency on agriculture is still high. The poor cannot pay tax, which reflects in lower access to civic services.

b) Another thing is that more than 60% of areas within the jurisdiction of the pourashava are rural and the people are not yet prepared to be the citizens of an A class pourashava mentally, culturally and financially. There is lacking of civic sense among them. That is they are not aware of the pourashava and its services from which the major part of the dwellers are deprived and also they are not aware of their duties and responsibilities.

c) Manikganj is a very backward place to be an A class pourashava and as a consequence its income from revenue collection is very low and so it cannot provide the necessary civic services to all of its inhabitants. In fact people with access to safe drinking water, electricity, paved road and conservancy services are not very significant in numbers. So, these people depriving from the services do not feel interest to pay taxes. Similar situation is prevailing in Madhabdi Pourashava. The inhabitants are completely deprived of piped water supply facility. The scenario of drainage and sewerage facility is quite alarming. The people depriving from the facilities do not feel any interest to pay tax.

d) In both Manikganj and Madhabdi Pourashavas, the income from revenue collection is very low which results in failure to provide the basic civic services to its inhabitants. In fact very few people have access to safe water, electricity, paved road and conservancy service. So, the majority of the people deprived from the services do not feel any interest to pay taxes.

e) Another important factor behind the reluctant tendency to pay taxes by the property owners is that it has become a culture of not clearing the taxes and ignoring the pourashava’s rules and notices. They have been practicing this negative attitude from years after years.Proper AssessmentIn Bangladesh land is assessed on capital value basis and improvements on an annual value basis. These mixed systems are common in cities of the former French colonies like Abidjan and Tunis (Bahl and Linn, 1992). Mexico levies both an annual and capital value tax. In Thailand, a capital value basis has been used for vacant land and an annual value basis for the land and buildings tax (Hubbell, 1974). In Turkey, the basic property tax is levied on the capital value of land and improvements, but municipal charges for street cleaning and lighting are based on the rental value of properties (Keles, 1972). Tax assessment is the act of valuation for the purpose of taxation. Any tax levy or imposition has to be preceded by a proper system of assessment for tax collection purposes. Assessment is defined as “the formal valuation or appraisal of each parcel of land including buildings upon the land by municipal officials known as assessors” (Rao1986). In the context of the local finance, property tax is generally used to mean tax on one basic form of property, namely real estate, i.e. land and buildings. This is also known as real property or immovable property. In our country, the basis or base of holding tax is the land and buildings of the owners or holders. The property tax administration has to determine the followings:

1. Location of property The zone (residential, industrial, educational etc.) in which the property is located has to be specified.

2. Assessing authorityAssessment authority or agency can be either a government constituted one or one constituted by the municipal council itself. As the latter may not have the professional skills and also may not remain unbiased in rate fixation, a separate agency for all the municipal bodies in the state has a distinct advantage.

3. Limiting the tax according to the kind of property The property tax has to be fixed according to various types of property; and

4. Assessment method or procedureThe method of assessment of valuation should be sound administratively, legally and economically.

So, the assessment of holding taxes depends on number of factors. Proper assessments need to analyze a number of aspects and coordinate them in a systematic way. But this performance of pourashavas in tax administration is extremely limited and the base of the holding tax is enormously undervalued (The World Bank, 1997).

The definition of the tax base of the holding taxes, the valuation principles, the rate structure, and the administrative practices in Bangladesh are set according to “The East Pakistan Municipal Committee (taxation) Rules, 1960” and “The Pourashava Ordinance, 1977.”According to Taleb, 2004 the underassessment rate in Dinajpur is about 6.6 times than the actual. From the survey data analyses he has shown that average under assessment of the holding tax is 666.60% i.e. pourashava assessment is 6.67 times less than the actual amount. If private and government/semi-government holdings are considered separately, the figures are 726.17% and 163.68% respectively. Again categorizing the holdings according to whether their holding taxes were reviewed by the Review Board or not, the figures for under assessment are 956.31% and 461.17% respectively. The under valuation that has been done by the Review Board is about double the figure for cases are not reviewed. So, the assessor has assessed normally 461.17% under valuation all over the private holdings. Most of the government/semi-government holdings have not been reviewed, which shows that under assessment, is only by 163.86%. In case it was not found that assessment was 34.07% over valued.In respect of socio-economic condition, Dinajpur and Manikganj are almost on the similar category. Both of the pourashavas are mainly agriculture based. In Manikganj the people monthly earning within Tk. 2000 to 8,000 are about 53% and in Dinajpur it is about 55% (LGED, 1998-99). Although the average rate of under assessment is about 6.6 times in Dinajpur Pourashva but definitely it would be at least 4 times in Madhabdi as well as in Manikganj. Because tax assessment procedure is almost same in every pourashava throughout the country. So, under the current assessment where the Manikganj Pourashava and Madhabdi Pourashava collected Tk.12, 31,858.44 and Tk. 62,610.00 respectively in the fiscal year 2002-03. But by revising the assessment, the amount could be Tk. 49, 27,433.76 and Tk.2, 50,440.00 respectively. And incase of due tax, in 2002-03 due tax in Manikganj was Tk.19, 02,405.65 and in Madhabdi it was about 9, 73,525.00. After imposing at least four times higher assessment rate these amount would be Tk. 76, 09,622.60 and Tk. 38, 94,100.00 respectively. Here one thing should be clarified that the taxes of 2002-03 has been selected as an arbitrary choice.In this respect, one question may raise, whether the people are able to pay more than four times higher rate of tax than the present rate of tax. But the answer might be positive. Because, Madhabdi is a well-known industrial area and Manikganj is also known for its ancient reputation in commerce and trade. Moreover, it is the general nature of human being is to interest for better quality of life. So, we can easily come to a decision that definitely the inhabitants of the two selected paurshavas would not mind to spend more at a reasonable level at the cost of better utility services and civic amenities for themselves and their upcoming future generations.Loopholes in Assessment of Rental Valuation of PropertyWhile seeking source of funds, the poura-officials pointed out on the loopholes remaining in the process of rental valuation of property. They informed that after the assessment list is approved, the taxpayers are free to inspect the assessment list. Anyone who disagree with the assessed tax can file review petition in the form prescribed for the purpose. These cases are heard by a sub-committee appointed by the pourashava under rule 29 of the Taxation Rules. If the decision is not satisfactory to the petitioner, he may, under rule 8, file appeal to the controlling authority within one month after receiving the order. The decision of the controlling authority is final. This is the legal procedure of filing petition and appeal to reduce assessed tax.But in case of both Mdahabdi and Manikganj, it has been found that the dwellers are local and as happens in a small town everyone is acquainted to each other. What happens is that the

citizens create pressure on the elected representatives to reduce tax and as the Chairman is elected by the direct vote of these people, he often fixes a much lower amount to feel them happy and increasing popularity.

CHAPTER-6RECOMMENDATIONS & CONCLUSION

The present study made an attempt to have clear ideas about the extent of services currently provided by the two pourashavas. Here main emphasis was offered on conservancy, street lighting, water supply and road maintenance. Because they are considered as the most fundamental services demanded by every poura dweller. Thereafter attempts were made to determine the likely required cost to provide adequate services to the poura inhabitants. For this purpose, most of the required data were collected directly from these pourashavas. Some information and data were collected from other different pertinent secondary sources. As it is well known that lands and holdings are not properly assessed, so attempts were also made for assessing whether proper collection of taxes can solve the fund problem of the pourashava.Summary of FindingsIt was found that although in Madhabdi 65% of the total population are facilitated with conservancy coverage but in Manikganj about 75% is completely deprived of the said facility. But Manikganj is about eight times larger in size than that of Madhabdi and comprises with more than double of the population of Madhabdi.Although access to safe and pure drinking water is the basic right of the inhabitants of every pourashava throughout the world but it is a matter of real concern that no inhabitant so far has been connected with piped water supply in Madhabdi in spite of being very close to the capital city of Dhaka. Here raises the opportunity of standing question of negligence, partiality and lack of transparency against central government. On the other hand, Manikganj is also not very advantageous position regarding this issue. Because only 50 % population access to the facility does not portray any pleasant image. Now a day’s safety and security issue have become the most important concern of all conscious inhabitants of the pourashava. And in our pre-selected pourashavas- Manikganj and Madhabdi, the problem is acute. Neither of the pourashava has been able to provide street lighting facility according to the demand.While reviewing Taleb, 2004 it was found that revenue generated by holding tax is increasing in all the pourashavas, though the rate of increase is not steady. In general, larger pourashavas have managed to increase holding tax collection at a higher rate. The rate increases gradually, but abruptly after each period of regular reassessments. It was also revealed that the share of holding tax in the total earnings of a pourashava fluctuates within a wide range, but displays a general increasing trend. The share hardly exceeds more than 50% of the total revenue.Through simplistic method we have already determined that to provide services at a reasonable level Manikganj and Madhabdi Pourashava will require about Tk 60 lakhs and Tk. 15 lakhs respectively. Their break up is provided with in Table 6.1.

Table 6.1: Required Amount for Satisfactory Services (annually) Service Required amount

(taka in lakhs)Service coverage (%)

(in respect of population)

Manikganj Madhabdi Manikganj MadhabdiConservancy 30 5 60 75Street lighting 10 5 70 80Water supply 5 60Road maintenance 15 5 70 80Total 60 15

Source: The data has been projected based on simplistic approach and discussion with the respective pourashavas

After determining the possible required cost, we have tried to find the possible sources of fund. In the following Table 6.2 the possible sources of fund are described by assuming four times more tax rate than prevailing rate.

Table: Possible Sources of FundSources of fund Amount (Tk.)

Manikganj MadhabdiThe amount collected after subtracting the existing holding tax from the amount getting by four times increasing the holding tax

36,95,574.56 1,87,830.00

Collection of due street lighting tax 12,76,110.00 7,76,026.00Collection of due holding tax 41,93,0565 1,90,7980.00Collection of due water rate 15,25,486.84Collection of due conservancy tax 6,14,968.16 1,21,0096.00Total 1,13,05,195.50 40,81,932.00

Source: Here the analysis has been prepared based on the actual data of 2002-03.The above-mentioned Table reveals that Manikganj and Madhabdi Pourashavas can earn about one crore taka and 41 lakhs taka more in a very simple pragmatic way. In another perspective, while being financially solvent, the poura-authority can think about revising the current rate of taxes of the services. As Manikganj is explicitly an agricultural arena and Madhabdi is not still a higher demanded industrial place because only textile based industries have been established here, the dwellers are not financially so much sound to feel from inner urge to pay taxes regularly. A larger portion of the dwellers remain as tax-defaulters. But while sharing views regarding improvement of ongoing unexpected statistics, many of them informed that if the tax rates are reduced in compliance with the income level of the majority of the inhabitants to a certain amount they would pay taxes because that rate would not be considered as a burden for them.So, we can see that the path of financially self-sufficient is not too far away to reach. It is very much within the reaching limit. But the only thing required is strong commitment both from pourashava officials and dwellers. They have to realize the reality. If it is possible, then a self-sufficient pourashava will no longer be a daydream or tall talk. Like pourashavas (municipality) of Malaysia, Madhabdi and Manikganj Pourashavas would give loan to the central govt. and our analysis simply reveals the truth. RecommendationsAfter conducting the research work we can come into following recommendations. They are as follows:1. Recovery of Due TaxDue tax is the most important impediment for any pourashava to be independent and self-reliant from financial point of view. From our study it is already revealed that huge amount of taxes remain due from years after years. The scenario is same for both Manikganj and Madhabdi Pourashavas. To recover due tax, poura-authority can adopt different types of measures such as tax exemption, fine imposement or auctioning. In tax exemption a certain amount of tax can be discounted or exempted from the poura-dwellers. The discounted or exempted rate can be fixed up for different years at a different rate. While fixing the rates, the proper participation of the inhabitants should be ensured. The dwellers accused for arrear tax can be brought under strict and mentionable fine in fine imposing process. In this case the current rules and rate of fine should be revised and fine-tuned. But in auctioning process, when the taxpayer fails to clear taxes within the due time, it falls on the pourashava to collect

the taxes through certain procedures. It should first issue a demand notice to the defaulter to pay taxes within 15 days. If the defaulter still does not clear the due tax within this period, a Distress warrant can be issued under section 38 of Municipal Administration Ordinance 1960 and with rules 12-15 of Taxation Rules. These rules allow the pourashava to sell all or portion of the defaulter’s immovable property at auction on the spot.2. Proper Collection of Current TaxAs the majority of the dwellers of neither Manikganj nor Madhabdi are financially solvent enough like the inhabitants of big cities such as Dhaka or Chittagong, very often they are observed not to feel sincere obligations to pay current taxes. They are not properly educated. Although according to the GoB the literacy rate of our both of the pourashavas are more than 50% but actual statistics is much poor. So, it is very clear that they never think about their duties and responsibilities to the pourashava. To improve the ongoing unexpected situation, poura-authority can arrange different types of awareness creation and sensitization program. Moreover, rational incentives can also be offered to them. 3. Solving Under Assessment ProblemUnder assessment is a very traditional problem. The problem has raised due to the lack of visionary approach of our policy makers. Till to date we are missing a systematic system of updating the rate of assessment. However, by consulting Taleb, 2004 and as Manikganj and Madhabdi Pourashavas are undoubtedly similar in case of socio-economic condition to that of Dinajpur Pourashava, it could be definitely justified to increase the rate of assessment at least four times for all types of holdings.4. Tax Rate RationalizingTax rates should be re-organized according to services provided. The rate of the holding tax is divided currently into 4 categories: (1) the holding tax at 75 of assessed value or annual value, (2) the conservancy rate at 7% of the same, (3) the lighting rate at 3% of the same and (4) the water rate of 8%. These rates should be flexible and adjusted considering the annual expenditure of these services. On the other hand, the tax and the rates of the holding taxes should be turned to a single “Poura tax” for better and easy understanding, and also to make its billing system easier. The upper current combined rate should be reduced from 25% for better collection efficiency and also to minimize underassessment.5. Proper TrainingThere is no substitution of proper training for ensuring effective output from staffs within limited time frame. Training enhances skills. During visiting, the absence of proper training among the staff of both of the pourashavas was greatly felt. When the poura-staff were asked to provide any data or information, usually they consumed longer time period more than they should actually required. And they confessed about their lacking in training without any hesitation. So, the poura- authority should adopt regular training program for its personnel that will help to improve their efficiency and will save valuable time. Moreover, it will help them to become more dynamic and more productive than ever before.6. Conflict ResolutionAs according to the Ordinance of 1965 the ownership of roads, right of ways, culverts, bridges within the jurisdiction of the pourashava are recorded under the name of the D.C, so naturally there raises conflict with the pourashava regarding maintenance of roads, bridges, culverts, bridges etc. So, by resolving conflict pourashava can enhance their operational arena and can prepare long-term development plan for ensuring better quality of life.7. Provision for Alternative Sources of FundExcept proper collection of taxes, recovery of due taxes and increasing the assessment rate, there are also some potential sources of funds. While discussing with the officials and inhabitants of the two selected pourashavas the following measures seemed to be significant for increasing fund:

1. Proper management of sairat mahal, balu mahal, stone quarries etc.2. Management of state land and water resources such as khas land, water bodies and

markets etc.3. Tree plantation on the govt. land by the pourashava4. Capital investment on income generating projects such as construction of market in

the govt. land.8. Reconstruction of Tax Review BoardThe Chairman of Tax Review Board should not be constituted by the Chairman of the pourashava (current system) or any elected personnel, chief executive officer of pourashava or any other government official, preferably retired Judiciary personnel may be the Chairperson of the board as like India and other countries. Because as Chairman is selected through direct election, he very often tries to satisfy followers as well as supporters through illogical and unjustified facilities. According to the dwellers of our respective pourashavas, these types of instances raised in many occasions in their pourashavas by the Chairman specially during the last two years of their terms.9. Establishment of Better RelationshipThere is an urgent need to develop extensive close relationship between the pourashava personnel and its inhabitants, specially the taxpayers. Pourashava area is divided into some wards; the ward commissioner is an elected person. But in a ward, there are a number of mohollas or group of settlement areas. To develop or ensure people’s participation, it is urgent to make a mohollah-wise organization as like, there in Thailand and other developing countries, where the ward commissioner may be the Chairperson and responsible to ensure co-ordination of development work, social campaign activities etc. and at the same time proper collection of the holding taxes and other taxes, rates or fees.