ASSESSING THE EFFECTIVENESS OF REVENUE MOBILIZATION METHODS OF LOCAL AUTHORITIES, A CASE STUDY OF CENTRAL GONJA DISTRICT ASSEMBLY, NORTHERN REGION

Abstract

The Local Government Act 462 of 1993 authorises and empowers the district assemblies to mobilise revenue in the form of rates, fees & fines, licenses, rent, among others to help finance projects in their various areas of authority. This study was conducted to assess the effectiveness of revenue mobilization methods of Local Authorities (LAs) in Ghana, Central Gonja District Assembly (CGDA) as a case study. The objective of the study was to come out with methods that can help CGDA to generate more Internal Generated Funds (IGFs) to meet its developmental needs. The research design used for the study was the mixed approach. Both qualitative and quantitative research methods were used for the study. The sample size was 120 and both purposive and simple random samplings were used for the study. From the study, the main sources of internal funds identified were fees and fines, lands, rent, rates, licenses, and miscellaneous. Fees and fines, lands and rent made the highest contribution to the Internally Generated Funds (IGF) of the Assembly. Areas considered under the challenges that CGDA'face included; insufficient IGFs, over reliance on District Assemblies Common Fund (DACF), corruption, inability to provide public needs, etc. The study recommended that CGDA should try to eliminate corruption, put in place reliable database on properties and businesses, use relationship marketing to reach out to stakeholder, increase tax education and sensitization. CGDA should also invest in hostel accommodation, shuttle transport, car park, toilets and other profitable ventures, recruiting more revenue collectors and train them to collect revenue for the Assembly, use of task force or debt collection team, provision of needed logistics for revenue collectors and automation of procedures.