ASSESSING THE NEXUS BETWEEN INTERNALLY GENERATED FUNDS AND INFRASTRUCTURAL DEVELOPMENT OF THE MMDAs IN THE NORTHERN REGION OF GHANA

Abstract

SEND-Ghana (2008) report revealed that MMDAs have 130 deficits in infrastructure with majority of the MMDAs in the Northern Region and 45% of most local infrastructures remain uncompleted especially IGF finance infrastructure. The study assessed the nexus between internally generated funds and infrastructural development of the MMDAs in Northern Region of Ghana. The study specifically identify whether there is significance difference between IGF of the MMDAs in the Northern Region and national IGF average, to examine the effect of internally generated funds (IGF) on infrastructural development in the Northern Region of Ghana and to explore the challenges facing the MMDAs in the Northern Region in mobilizing and utilizing of internally generated funds (IGF). The study employed descriptive research design with a sample size of 127 selected through purposive and simple random sampling. Data was collected using closed and open ended questionnaire. The study employed one sample TTest, Generalized Method of Moments and Kendall’s Coefficient of Concordance. The study found out that there is difference in internally generated fund mobilization performance between the MMDAs in the Northern Region and that of the national internally generated average with MMDAs in Northern Ghana performing below the national average. Also, we observed there is positive relationship between internally generated fund and infrastructural development which is significant at all conventional levels. The positive effect of internally generated fund is significant irrespective of the model specification. Inadequate linkage between the tax payment and the services, weak tax rate payment, lack of enforcement of payment of property rates among others. The study recommends the MMDAs to be creative and innovative to enhance the mobilization of internally generated fund to enhance infrastructural development which is critical for local economic growth.