Financial resource mobilization and performance of local governments in Uganda a case of Nakawa division in Kampala.

Abstract

This study was about the relationship between financial resource mobilization and performance of Local Governments in Uganda, with a specific reference of Nakawa Division in Kampala. Specifically the study examined the relationship between revenue collectors’ professionalism and performance of Nakawa Division; evaluated the relationship between accountability of financial resource and performance of Nakawa Division; analyzed the relationship between budgetary controls and performance of Nakawa Division and determined the moderating effect of citizen participation on financial resource mobilization and performance of Nakawa Division. Resource Mobilization carried out using a correlational and cross-sectional research design; a mixed approach combining qualitative and quantitative methods was utilized. The study had a target sample of 105 respondents was determined using Morgan and Krejcie’s Table (1970) though 103 actually participated in it. Basically, the study established that 63% of performance of Nakawa Division was highly related with financial resource mobilization. Results further indicated a strong positive relationship between of revenue collectors’ professionalism and performance (r= .686, n=99, p< .01); a very strong positive correlation (r= .638, n=99, p<.01) between accountability of financial resource and performance; and a significant relationship between budgetary controls and performance of Nakawa Division depicted by correlation (r= .592, n=99, p<.05). Therefore, null hypotheses in all hypotheses were rejected. The study concluded that when financial resource mobilization in form of revenue collectors’ professionalism, accountability of financial resource and budgetary controls is improved, there are the higher the chances of an increase in performance of local government like Nakawa Division. The study there recommended the necessity to regulate bribery in the taxation structures beginning from the tax determining phase and the implementers so as to assist the division realize the projected tax, this can be realized by setting up systems which help track all businesses and their performance; the key actors at the division (CAO, the planning and finance section) should mobilize funds and spend funds according to the standing orders that govern finance. In addition, the budget should be properly planned to guarantee that the priorities are on the essential duties of the agencies, and citizen participation needs to be enhanced through engaging the stakeholders within all stages of financial resource mobilization monitoring of the various projects. An activity where stakeholders participate may be long-lasting and facilities protected.