Department of Finance and Accounting

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Browsing Department of Finance and Accounting by Author "Apiyo, Christine"

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    Fiscal decentralization and local revenue generation in Uganda. A case of Gulu Municipal Council
    (Uganda Management Institute, 2015-06) Apiyo, Christine
    The purpose of the study was to examine the effect of fiscal decentralisation on local revenue generation in Gulu Municipal Council. The study looked at the following objectives; to examine the effect of intergovernmental transfer systems on revenue generation in Gulu Municipal Council, to examine the effect of expenditure assignments on revenue generation in Gulu Municipal Council, and to examine the effect of revenue assignment on revenue generation in Gulu Municipal Council (GMC). The study took a cross sectional survey design, where both qualitative and quantitative methods of data collection and analysis were used. Data was collected using questionnaire, interview guide and focus group discussion guide. The data collected was analyzed using both descriptive and inferential statistical techniques of analysis. The study found out that intergovernmental transfers improve local revenue generation. But still currently transfers contribute the biggest portion of revenue, and the study confirmed that intergovernmental transfers are regarded as the main source of revenue in Gulu Municipal Council (GMC). The finding also confirms that GMC has persistently remained financially dependent on central government transfers. The finding further showed that expenditure assignments to GMC contribute to local generation. However the assignments of functions have not been appropriate to enable GMC generate local revenue as always planned. Besides GMC lack the independence to determine what is required of them in terms of grants and other revenue sources due to political interference by the central government. The study further reveals that much as the central government has assigned revenue to sub- national governments, revenue funds to run the responsibilities has remained insufficient. This is because fiscal decentralization has not given full autonomy of taxing power to Municipalities due to political influence, and there is low concession to increase investment in the Municipal Council. As a result, the revenue base is still low at the same time revenue collection has remained dismal annually.