Sustainable Development Goals
Status
ongoing
50%
City
Siddharthanagar
Main actors
City Government, Community / Citizen Group
Project area
Whole City/Administrative Region
Duration
Ongoing since 2023
A citizen-centred digital governance transformation to improve transparency, service access, and public participation in the City of Siddharthanagar. This initiative contributes to the Sustainable Development Goals by transforming how local government services are delivered, making them more inclusive, accountable, efficient, and citizen friendly.
This is an abbreviated version of the original case study on the Urban SDG Knowledge Platform with information provided by the City of Siddharthanagar.
City
Siddharthanagar, Nepal
Size and population development
As of the 2021 Census, Siddharthanagar Municipality had a population of approximately 74436 inhabitants. Located in Rupandehi District in Lumbini Province, the municipality covers an area of around 38.5 square kilometres. Siddharthanagar was established as a municipality in 2014 through the merger of several village development committees. The population has grown steadily over recent decades due to rural-to-urban migration and its strategic location near the Indian border, with growth rates reflecting broader urbanization trends in the Terai region of Nepal.
Population composition
Siddharthanagar has a diverse multi-ethnic and multi-religious population characteristic of the Terai region. Major ethnic groups include Tharu (indigenous to the region), Brahmin, Chhetri, Magar, Newar, Madhesi communities, and Muslim populations. The linguistic landscape is equally diverse, with Nepali as the official language, alongside Tharu, Awadhi, Bhojpuri, Urdu, and other regional languages. Religiously, the population is predominantly Hindu (approximately 85-90%), with significant Muslim, Buddhist, and Christian minorities. The city has a relatively young demographic profile, with a median age in the mid-20s, consistent with national trends.
Main functions
Siddharthanagar serves as an important administrative, commercial, and transportation hub in Rupandehi District and Lumbini Province. The municipality is strategically located adjacent to Bhairahawa (Gautam Buddha Airport city) and serves as a gateway to Lumbini, the birthplace of Lord Buddha and a UNESCO World Heritage Site located just 22 kilometres away. This proximity makes Siddharthanagar significant for religious tourism and pilgrimage. The city functions as a commercial centre for the surrounding agricultural region and benefits from cross-border trade with India through the nearby Sunauli border crossing. Siddharthanagar is also developing as an educational centre with schools, colleges, and training institutions serving the region.
Main industries / business
Siddharthanagar's economy is primarily based on agriculture, trade, services, and tourism-related activities. The surrounding fertile Terai plains support cultivation of rice, wheat, sugarcane, lentils, and vegetables, with many residents engaged in agriculture and agro processing. The city has a vibrant commercial sector with markets, shops, and trading businesses, particularly benefiting from its location on major transportation routes and proximity to the Indian border. Cross-border trade through Sunauli contributes significantly to local commerce. The tourism sector is growing due to proximity to Lumbini, supporting hotels, restaurants, transportation services, and handicraft businesses. Small and medium-scale industries include rice mills, oil presses, brick kilns, and food processing units. The service sector encompasses banking, telecommunications, healthcare facilities, and educational institutions.
Sources for city budget
The Siddharthanagar Municipality's budget is derived from multiple sources including local revenue collection (property tax, house rent tax, business registration fees, and service charges), fiscal transfers and grants from the federal government and Lumbini Provincial Government as mandated by Nepal's federal structure, revenue sharing from national taxes, income from municipal properties and enterprises, and development grants from national and international development partners. The municipality also receives specific allocations for infrastructure projects, social programs, and capacity building from various government programs and donor agencies.
Political structure
Under Nepal's federal democratic republic system established by the 2015 Constitution, Siddharthanagar is governed by an elected Municipal Council. The council is headed by a Mayor (Nagarpalike Adhyaksha) and Deputy Mayor (Upadhyaksha), elected directly by voters for five-year terms. The Municipal Assembly includes ward chairpersons from each of the municipality's wards, along with members elected from various constituencies. As part of Lumbini Province, Siddharthanagar is also represented in the Provincial Assembly and the federal House of Representatives. The municipality operates within Nepal's three-tier federal structure (federal, provincial, and local governments) with constitutionally defined powers and responsibilities.
Administrative structure
Siddharthanagar Municipality is divided into multiple administrative wards (the exact number follows Nepal's local government structure), each with an elected Ward Committee consisting of a Ward Chairperson and members representing different constituencies. Each ward handles community-level service delivery and participates in municipal decision-making. The municipal administration is organized into various functional departments and units responsible for urban planning, infrastructure development, education, health services, social welfare, revenue collection, disaster management, and environmental management. The municipality coordinates with provincial ministries on matters of provincial jurisdiction and with federal agencies for national programs and inter-governmental collaboration.
Website
https://siddharthanagarmun.gov.np/en
Siddharthanagar, a gateway to Lumbini and southern Nepal, is rapidly urbanizing. However, prior to 2022, public service delivery was manual, inefficient, and opaque. Citizens faced delays in birth registration, land tax payments, social security, and grievances.
Objectives
• Digitize municipal services for citizens
• Improve access to social services for vulnerable groups
• Build a data-driven municipal governance model
• Enable evidence-based urban planning and accountability
1. Developed a municipal e-service platform (https://eservice.siddharthanagarmun.gov.np)
2. Launched mobile app and SMS-based alerts for tax payment, public notices, social benefit dates
3. Initiated e-attendance and digital file tracking for municipal offices
4. Trained all ward secretaries and over 80 community facilitators on digital services
5. Introduced QR code-based digital tax receipts
6. Community-led awareness drives, especially for women and elderly
7. Ongoing integration with Lumbini Province e-governance systems
Monitoring & Evaluation
• Monthly dashboards for service usage
• Citizen satisfaction surveys (biannual)
• Technical audit by third-party ICT partner
Sustainability Strategy
• Dedicated ICT unit at the municipality
• Training-of-trainers (ToT) for municipal staff
• Budget allocation embedded in annual plans
Initial Budget: USD 125,000 (2023–24)
1. CAPEX: $80,000 (hardware, software, training)
2. OPEX: $45,000 (technical support, digital promotion, maintenance)
Resources Allocated
External Support:
1. Technical assistance from ICT Nepal
2. Budget partnership with Lumbini Province ICT Fund
ROI (Return on investment)
1. Reduced paper costs
2. Faster processing means better compliance and revenue collection
3. Platform being explored for e-commerce and SME promotion
• Over 27,000 digital transactions completed in first 12 months
• 95% of land tax payments now online or mobile-based
• Significant reduction in paper-based processes
• 40% increase in female citizens using digital services
Impact on Disadvantaged Groups
• Provided offline support centres in wards for digital access
• Inclusive design through stakeholder workshops with elderly, disabled, and Dalit communities
• Limited transparency and record management
• Low access to digital tools among marginalized groups
• Youth migration due to lack of smart city planning
Lessons Learned
• Best suited for small and mid-sized municipalities with budget and staff limitations
• Key takeaway: start small, training , and listen to community feedback
• Need continuous staff capacity development
• Budget allocation from central government should be given continuously to fulfil the requirements
Transferability
• Already replicated partially by Butwal and Lumbini Sanskritik municipalities
• The system uses open-source architecture for easy scaling
• Best suited for small and mid-sized municipalities with budget
On Map
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