Local revenue mobilization and performance of local government in Wakiso district Uganda

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Kampala International University, College of Economics & Management
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
A thesis presented to the College of higher degrees and research of Kampala International University Kampala, Uganda in partial fulfillment of the requirement for the degree of master of business administration of Kampala International University
Revenue mobilization, Local governmen, Wakiso District, Uganda