Analysis of local revenue collection performance in local governments in Uganda: A case study of Ntoroko District Local Government

Abstract

The purpose of the study was to analyze the causes of low local revenue collection performance in local governments of Uganda using Ntoroko District as a case study. Based on the objectives and research questions. The study covered F/Y 2011/12 – 2015/16. The research design was a cross sectional study. Both qualitative and quantitative approaches were used. The population under study was 65 respondents from the district headquarters and sub countries of: Karugutu, Nombe, Rwebisengo, Kanara, Bweramule and Butungama. A sample size of 56 respondents was determined using Krejcie and Morgan’s tables (1970). The sampling technique used was non-probability sampling. Purposive and simple random sampling techniques were used to select respondents from the study population. Research instruments such as questionnaires and review of various documents were used to get the information that addresses the issues understudy. Chapter four presents the data, analysis, interpretation and discussing the findings. This was done in accordance with the objectives of the study. The study found out that local revenue collection in Ntoroko District was low on average 2% - 4% of the total revenue collections. There were various causes of low collections including: Narrow tax base, inadequate enumeration and assessment of revenue sources, weak internal control systems, creation of new town councils, inadequate sensitization of tax payers, poor enforcement approaches, weak administrative capacity, poor provision of infrastructure and weaknesses in revenue enhancement strategies. Chapter five presents summary, conclusions and recommendations of the study. This chapter was derived from chapter one and four. The study recommends good practices in revenue enhancement strategies. Finally, the study concluded that local revenue collections in local governments are low and there were various causes for the low collection performance. However, the local government should make sure that the causes are dealt with to make sources deliver more revenue to the council and new sources of revenue should be identified.