Analysis of local government's revenue collection and expenditure performance

Abstract

This study was carried out to analyze the local government's revenue collection and Expenditure performance in Sheema district. The researcher used mostly the secondary data which was collected from different documents of the local government of the mentioned district. Different techniques were employed to come up with a clear and understandable analysis that can help other parties in different studies as well as decision making. The researcher used descriptives, correlations, regression analysis for easy comparisons between variables The researcher employed descriptive research design to describe the phenomenon as it exists, comparative research design to compare local revenue collection and service delivery in Ntungamo District, associational research design to get the causal effect and relationship between local revenue and service delivery in Ntungamo District. The researcher collected different documents and reviewed them to collect the necessary data for the study. The data obtained was then filtered and organized for easy analysis. Data collected was analyzed using a computer package called SPSS with the help of Excel and was presented in tables and charts. Correction coefficient and regression analysis helped the researcher to carry out the analysis on how the expenditure (planned) relates to the service delivery. The researcher used the actual expenditure to measure the service delivery during this study. The findings of the study indicate that increase in actual expenditures as well as the revenue collection leads to increased service delivery and thus a significant relationship exists between the local government's expenditure and service delivery. From the findings of the study it is evident that local Governments need to put in more effort to properly manage their expenditures and ensure that they are allocated to the purposed areas The findings also show that more effort is needed to enhance local revenue collection and other reveues since service delivery is a significant indicator of local revenue performance.