The Impact Of Domestic Revenue Performance On Budgetary Compliance.A Case Study Of Mubende District

ABSTRACT

This study was carried on the impact of Domestic Revenue Performance on

budgetary compliance in Mubende district. The study objectives included;

identifying the level of domestic revenue performance in Mubende District,

finding out the Tevel of budgetary compiTance ana 1denflfyTng measures to

improve the levels of domestic revenue performance and budgetary compliance

in Mubende District.

The research was more of qualitative though the researcher stated that

quantitative was used to. The researcher used the stratified method of sampling

in administering questionnaires and interviews. The researcher took a sample

size of 50 individuals stratified according to the District departments directly

related to finance, tax collection and domestic revenue management. Results

from raw data which was collected, presented in form of tables was eventually

qualitatively interpreted. The study revealed that local governments are

increasingly constrained by inadequate resources vvhich has :ed to a low impact

of domestic revenue performance on budgetary compliance in Mubende district

of which it has been caused by the following according to t he findings; political

economic dynamics underpinning Domestic revenue management which took 24

% according to the responses, the economic structure is predominantly agrarian

driven and hard to tax which took 22%, and the growing levels of incentives

and exemptions to businesses which constituted 20% according to the the

responses form the respondents where the major factors leading to stagnation in

the district.

I thus recommended that a number of systems should be developed to curb tax

evasion, reduce revenue leakage and simplify compliance in the district. There

should be an improved taxpayer services for example, a facility for direct banking

to improve the processes of Domestic Revenue management and improve on the

levels of budgetary compliance in the district .It was concl uded that, if the above

recommendations are followed the levels of domestic revenue performance in the district will be improved.