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The research issue centers on examining the solvency of urban municipalities in Nepal, focusing on their ability to meet long-term financial obligations. The main aim of the study is to assess the financial condition of municipalities in the context of Nepal. A descriptive research design was employed to assess the financial condition of municipalities. The study targeted only the urban municipalities of Nepal. The study comprises two years of data from 2019/20 and 2020/21. The sample consisted of 37 urban municipalities representing different types in different geographical locations representing all seven provinces and all ecological zones in Nepal.  The analysis of the financial condition of local urban governments in Nepal across two fiscal years (2019/20 and 2020/21) reveals no significant differences in LGFCI based on municipal type (f(2,72)=0.166, p>0.05) or ecological zone (f(2,72)=0.229, p>0.05). In FY 2019/20, 5 local governments were classified as having a good financial condition, 25 as average, and 7 as poor. In FY 2020/21, the numbers dropped to 3 in good condition, 29 in average, and 5 in poor condition. There was limited movement in financial status between the two years, with 7 local governments shifting, and most remained in the average category. This suggests a need for improved financial management in local governments.  In conclusion, the financial condition of local urban governments in Nepal, based on LGFCI, shows no significant difference by municipal type or ecological zone. Most local governments are classified as having an average financial condition, with only a few in good or poor financial status. Over the two fiscal years, few local governments showed changes in their financial status, highlighting the need for better financial management practices to improve stability. The results have policy implications for strengthening fiscal federalism in Nepal.

This study investigates the effects of revenue enhancement plans (REPs) on revenue collection performance in Tanzanian local government authorities (LGAs), focusing on Mwanza City Council, Manyara Urban Council, and Mbeya City Council. The research adopts a mixed approach, collecting data from 400 respondents using a multistage sampling technique. The data were analyzed using a multivariate ordered probit model. The results reveal that reducing revenue leakage and improving revenue forecasting accuracy significantly enhance revenue collection performance. Specifically, the coefficient for revenue leakage was -1.221 for effectiveness (p<0.01) and -1.59 for increment (p<0.01), indicating a strong negative impact on performance. In contrast, accurate revenue forecasting positively impacted effectiveness (1.390, p<0.01) and increment (0.516, p<0.01). The model also showed that high implementation costs negatively impacted revenue growth (increment: -1.634, p<0.05). Compliance was found to positively influence reliability (1.533, p<0.01) and efficiency (1.029, p<0.01), underlining the importance of adherence to regulations. The results also highlighted the need for cost management strategies, as implementation costs and leakages hinder revenue growth and efficiency. The study recommends policy measures such as adopting digital solutions to reduce revenue leakages, investing in forecasting tools, and strengthening compliance mechanisms to optimize revenue collection and improve financial sustainability.