Local Revenue Mobilization and Performance of Local Government in Wakiso District Uganda

ABSTRACT The study examined the relationship between local Revenue Mobilization and Performance of Local government in Wakiso district and it was based on five specific objectives: (a) to determine the demographic characteristics of the respondents in terms of gender, marital status, education, position and experience; (b) level of local revenue mobilization in Wakiso district; (c) level of local government performance; (d) difference in the level of local revenue mobilization and local government performance and (e) to establish if there is a significant relationship between the levels of local revenue mobilization and local government performance in Wakiso district. The study employed a descriptive comparative and correlation research design. SAQ were used to collect primary data from 133 out of population of 200 people, using simple random sampling. Data analysis was done using SPSS’s frequencies and percentages; means, One Way ANOVA, PLCC and Regression analysis. Findings revealed that majority of the respondents were male, in the age group of 20 — 39 years, majority were graduates and politicians. Means showed that the level of local revenue mobilization and local government performance in Wakiso district were satisfactory. PLCC revealed a positive and significant relationship between level of local revenue mobilization and local government performance; while regression analysis showed that local revenue mobilization contribute over 18% to variation in the level of LG performance in Wakiso district. Basing on the above findings, the researcher made the following recommendations: (i) there is need to fight corruption in the taxation systems starting from the tax determining stage and the implementers so as to help the district realize the projected tax , this can be realized by setting up systems which help track all business and their performance; (ii) there is need to set fine for unregistered business and tax embezzlers so that they are attracted to declare their earnings and stop the vice and this will be achieved when all stake holders are involved;(iii) there is need to create flexible tax policies so that some business which are small enough and in certain places targeting the very poor people can be considered when it comes to taxation; (iv) there is need to develop a common and standardized software to help and easy the life of tax payers so that they can freely and conveniently pay their taxes whether at their business premises or homes without necessarily travelling long distances to banks or going to revenue offices; (v) tax board need to prove tax related documents before they accepted any amount because some people use this loophole where by some people pay little taxes which are not correlated to their businesses; (vi) there is need to establish control systems to reduce the budget expenditure (cash outflow) because right now it is very high and above the estimates because this situation will hinder the smooth running of the district activities; (vii) the planning unit need to work had to improve the area of projects projections to enable projected to be accomplished in estimated time frame

 TABLE OF CONTENT

Chapter Page

PreHm~nary pages

Declaration A

Declaration B ii

Approval Sheet iii

Dedication iv

Acknowledgements V

List of Acronym vi

Abstract Viii

List of Tables xii

ONE THE PROBLEMAND ITS SCOPE 1

Background of the Study 1

Problem Statement 2

Purpose of the Study 3

Research Objectives 3

Research Questions 3

Hypothesis 4

Scope of the Study 4

Significance of the Study 4

Operational Definitions 5

TWO REVIEW OF RELATED LITERATURE 6

Concepts, opinions, Ideas from author/expert 6

ix

Theoretical Perspective 12

Related Studies 13

THREE METHODOLOGY 14

Research Design 14

Research Population 14

Sample Size 14

Sampling Procedure 15

Research Instrument 15

Validity and Reliability of the Instrument 16

Data Gathering Procedures 16

Data Analysis 17

Ethical Considerations 18

Limitation of the Study 18

FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION 19

Profile of the Respondents 19

Level of local Revenue Mobilization 20

Level of Local government Performance 23

Difference in the level of local Revenue Mobilization and LG Performance 25

Relationship between local Revenue Mobilization and LG Performance 25

FIVE FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 28

Summary of the Findings 28

Conclusions 28

Recommendations 29