ABSTRACT
This chapter provides an overview of a major revenue source for all local government levels in Bangladesh: transfers from the central government. It describes the general features of the grant system in Bangladesh and reviews its revenue importance. The chapter presents a detailed analysis and evaluation of each component of the system, and an evaluation of the overall impact of the system. A one type of grant to rural local governments is referred to as normal grants. Local governments in Bangladesh may be divided into a rural and urban sector. The Food for Work Programme (FFWP) seems a logical approach to rural development in Bangladesh: make use of surplus labor in rural areas to carry out public works projects and compensate this labor with wheat. The FFWP was originally designed as a temporary relief program; it functions as a major part of the intergovernmental grant system and therefore can and should be assessed as a part of that system.
