1.1 Background The Pourashavas are one tiers of urban local government in Bangladesh . There is both cooperation as well as separation of activities between the urban local government and the central government in regards financial management and administration, maintenance of law and order, prevention of law and order, development of infrastructure etc. For the reason, local governments will have to develop a history of generating an annual surplus of revenues over expenditures. So, not only must the local government manage its finances well, they must be able to present well maintained budgeting and accounting records to verify their performance. There are only three ways that a local government can reliably develop a surplus that they can commit to long term debt repayment. They can increase their “own source revenues” as currently defined. They can reduce their expenditures. They can develop new sources of revenue. In Bangladesh , the income of Pourashava depends o