Management of funds in lira district local government (LDLG)

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Kampala International University, College of Economics and Management
Local Governments have been empowered by the Central Government in matters of development and financial management; Revenue collection and management has been characterized with many problems like unrealistic budgets due to lack of accurate data and updated revenue registers, poor and incomplete enumeration and assessment which has led to poor revenue collection and management and big revenue budget deficit. This study therefore seeks to determine the different sources of Revenue in Lira district, investigate whether the process of revenue collection and accountability are transparent and investigate the level of revenue improvement. The study adopted a case study approach so as to generate data from the widest range of respondents who take responsibility in setting guidelines and implementing them. The study employed two instruments of data collection namely; questionnaires and documentary review. The study findings revealed diversified sources of revenue collection in LDLG All the solicited responses (93%) acknowledged a number of sources of revenue. According to the responses captured by the researcher within a range of financial years 2004 to 2007. The sources included: Graduated tax, property tax, ground rent, licenses, vehicle parks, markets, government grants, and external funding from the donors. This research study identifies that local revenue is central to the functioning of independent and accountable local government in Uganda. Therefore actions in the following areas which would assist in re-enforcing the core principles of managing funds are recommended. The local government finance commission should conduct a study to determine the funding levels required to have service delivery in local governments to be realistic; The local government finance commission should conduct a study about the modalities of transfer below the district and the capacities of lower local governments to manage the increased funds be enhanced. A concerted effort needs to be made to inform the public of the importance of local revenue and what local taxes are used for. Greater scrutiny needs to be placed on budget discipline and monitoring of local government adherence to their budgets.
A thesis submitted in partial fulfillment of the requirements for the Award of a Degree of Master of Business Administration of Kampala International University (KIU)
Management, Funds, Lira district