Evaluating the Effectiveness of Local Revenue Mobilization in Kumasi, Ghana

Abstract

The paper evaluates the effectiveness of local revenue mobilization in the Kumasi Metropolitan Assembly (KMA), Ghana. The indicators for the evaluation included the Revenue Performance Index (RPI), Financial Autonomy Index (FAI) and Local Finance Support Index (LFSI). Both the primary and secondary sources of data were used as well as the employment of quantitative and qualitative data analysis methods. The paper reveals that KMA depends more on transfers to finance its development. There is therefore the need for the assembly to outline pragmatic measures to increase its Internally Generated Fund (IGF).

Fighting the Cancer of Corruption and “Hostage-Taking” in the District Assemblies in Ghana

“…Whatever they eat individually will go into the same stomach” (Ahwoi, 1992). This relationship between the district assemblies, democracy, and development is important because it is seen as a means of enabling local people to make decisions affecting their own development (Anaman, 2000: xi). Further, and as Anaman (2000) again points out, the development of the rural communities will also ensure a rise in their productivity, income-levels, and the purchasing power of people living in these communities.…”

“…This relationship between the district assemblies, democracy, and development is important because it is seen as a means of enabling local people to make decisions affecting their own development (Anaman, 2000: xi). Further, and as Anaman (2000) again points out, the development of the rural communities will also ensure a rise in their productivity, income-levels, and the purchasing power of people living in these communities. In broad terms, therefore, it is clear that the concept of the district assemblies seeks to ensure local participation in the design and implementation of development programs that meet the basic needs of local communities.…”

The Enigma of the Central–Local Government Relationship and Its Impact on Property Tax Administration in Developing Countries: The Ghanaian Perspective

“…PTA inevitably involves some collaboration and overlap between different levels of government, and thus depends very much on the relationship between both levels of government. However, many central governments in developing countries are highly reluctant to collaborate and more so to devolve PTA to local authorities (Ankamah and Yao 2013). In cases where the central government has devolved such powers to local authorities, these authorities have been ineffective in undertaking this administration due to central government interference, 'perverse incentives, inappropriate property tax policy, the lack of property administration systems, trained personnel, and synchronization of improved local service delivery with enhanced revenue mobilization' (Kelly 2000: 37).…”