Performance evaluation at the local level

Errant local governments can be punished through the fiscal transfer channel like in the past.

As per the Local Government Operation Act, local units have until June 25 to present their budget for the forthcoming fiscal year which begins on July 15. But many local units have been tardy in submitting their annual financial plans. Questions have been raised why action should not be taken against them. The performance-based grant system provides much information on what action should be taken against those who do not submit the budget on time. Errant local government can be punished through the fiscal transfer channel. This system has been in place for some time and it worked well. Earlier, it was called Minimum Conditions and Performance Measurements, and was an integral part of the local governance reform process. The performance of local units was measured through two tools called Minimum Conditions and Performance Measurements. If a local unit failed to meet any of the conditions, it would not be eligible for additional grants.