Mobilization of Internally Generated Funds in The Awutu Senya East Municipal Assembly; Realities, Prospects And Challenges.

ABSTRACT

Decentralisation comes with concepts such as fiscal decentralisation and autonomy which enjoins local governments to generate revenue from internal sources. The local government reforms in the 1990s and its subsequent Local Government Act in 1993 provide for a number of instruments to empower local governments in their local revenue generation. The internally generated funds (IGFs) are the own-sourced revenue of local governments in the country. It is revenue generated, accessed and utilised by district assemblies. However, the biggest challenge facing district assemblies is their inability to mobilise IGFs for local development. This study examines the realities in IGF mobilisation, the challenges confronting the municipal assembly in their local revenue generation and other potential local sources of revenue that can be utilised by the Assembly. The case study approach was used to study IGF mobilisation in the Awutu Senya East Municipality, which is one of the fastest growing municipalities in Ghana. Data were collected through in-depth interviews of people with knowledge of the subject area within the municipality. The study found out the assembly to an extent has been reaching its targets for IGF, but it was found out that these targets were not realistic considering the revenue potential of the municipality. It was also found that the assembly faces a number of challenges in its revenue generation, key among them include the leakages in the revenue system, absence of well documented data on revenue sources and a host of others. Possible solutions to these problems have been provided. The study also came out with viable local sources of revenue that is currently not being utilised by the assembly. These sources are to enable the assembly boost IGF generation in the municipality.