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

The increased flow of resources to LAs necessitate good governance through democratic effective and coherent governance systems and institutions while respecting autonomy of the sub-structures.  This will require TCs to carry out their core PFM and procurement functions in an efficient, accountable and transparent manner.  This result area is about strengthening governance aspects of decentralization. 

Result Area 3: Strengthened Fiscal Framework for Devolution.

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

Result Area 4: Capacity Building of Town Councils.

The Government is reforming the human resource management system and has embarked on a comprehensive capacity development program for LAs to enhance, efficient and quality of service delivery.  There exist wide variances in the capacity of TCs across the country. Considering the program design of having TCs to qualify for accessing grants, the TCs are required to be supported with capacity building upfront. The capacity building support will be provided through the IPF