LOCAL GOVERNMENT AND DOMESTIC REVENUE MOBILISATION: THE CASE OF EAST GONJA DISTRICT ASSMBLY IN THE NOTHERN REGION

Abstract

Financing local government development presents a worrying scenario to many Municipal, Metropolitan, and District Assemblies (MMDAs). While some MMDAs are well endowed with resources, others have less. However, how efficient and effective actors are able to identify, exploit and allocate these resources inform how developed their society may be. It is on this note that this study was conducted to examine the potentials and challenges of internal revenue mobilisation in the East Gonja District Assembly. The main instruments used in the collection of primary data were interviews, questionnaire and observation. Secondary data was also collected from journals, internet and published works. The researcher summarised field work by using frequencies and percentages. Tables and charts were also used to present findings. The study revealed that, despite the mandate of MMDAs to mobilise internal revenue to augment the statutory DACF and donor support, the IGF contributions to the East Gonja District revenue envelop in the years 2011 was three percent, two percent in 2012, and three percent each in 2013 and 2014 and then increase to four percent in 2015. The study further revealed that human factors such as low level of awareness, lack of training, lack of logistics and motivation and low internal control systems negatively affect IGF mobilisation. Environmental factors including inaccurate data and lack of maintenance of tangible IGF sources including markets, toilets and tourist site are disincentive to tax payment. The study identified the alienation of stakeholders and non-promulgation and gazetting of the district byelaws as factors that militates against IGF mobilisation. The study therefore recommends among others three ways of improving IGF performance; capacity building, political will and improvement of IGF sources.