Approval Date: June, 2022

The Local Government (City Corporation) Act, 2009 empowers City Corporations to levy and collect taxes, prepare budgets and maintain their funds with a view to providing quality and improved civic services to the citizens living in the City Corporation area. To enhance the financial capacity of City Corporations as well as resource acquisition and management under the legal framework. The government and the local government department allocate money in favor of the city corporations from the development assistance sector every year. Funds are also allocated under the Annual Development Program for the implementation of special projects and to deal with emergencies.

In the current context, with the aim of ensuring transparency, accountability and financial discipline in the use of resources, guidelines have been formulated for the allocation and use of all these development assistance funds allocated in favour of the City Corporation under the annual development program. Through the issuance of these guidelines, it will be possible to ensure proper allocation and expenditure of the development assistance given by the government to the city corporations. Besides, it is expected that this guideline will play an important role in the adoption and implementation of development projects/programmes at the stage of city work.