PMDFC has been mandated to:
- Assist local government in building the capacities for better fiscal and service delivery management
- Provide matching grants to local government for the construction, rehabilitation and expansion of infrastructure and to act or provide consultants for evaluation, monitoring and advising for their institutional reforms
- Monitor, evaluate and ensure that funds are used properly, efficiently and transparently
- Provide an effective management and information system for regular and proper monitoring and evaluation over financial and technical assistance to local governments from the fund
- Support, initiate, undertake and promote research activities