Financial Management and Education Service Delivery in Local Governments in Uganda: A case of Bushenyi District Local Government

Abstract

This study examined the effect of financial management on education service delivery in Bushenyi District Local Government. The general objective of the study was to examine how financial management influences education service delivery in Bushenyi District Local Government, and specific objectives of the study were to establish the relationship between financial planning and education service delivery in Bushenyi LG, to examine the extent to which revenue collection affects education service delivery in LG, and to find out how financial control affects education service delivery in BLG. The study was guided by the theory of agency as advanced by Stephen Ross and Barry Mitnick (1973). Financial management was taken as independent variable with dimensions of financial planning, revenue collection and financial control, while education service delivery was the dependent variable with dimensions of enrollment, school dropout, staffing, and education infrastructure. The study was carried out at Bushenyi district headquarters, and neighbouring sub counties. A case study and cross sectional research design, using both qualitative and quantitative research approaches in data collection and analysis was adopted. A sample size of 133 respondents composed of employees in Bushenyi LG and local population was used, and the response rate was 80.9%(107). The study found out that there was a moderate positive significant relationship between financial planning and education service delivery, that revenue collection to a lower but significant extent affects education service delivery, and financial control had positive significant influence on education service delivery in Bushenyi Local Government. It was also established that local revenue collection were inadequate, less funds are transferred to the district from central government, and accountability is still poor. The study recommends that; financial planning should be more participatory, new measures to increase local revenues to be put in place, improving accountability for funds spent on service delivery, and the central government should increase funding to BLG.