AN ASSESSMENT OF THE IMPACT OF REVENUE MOBILIZATION ON THE DEVELOPMENT OF NEWLY CREATED DISTRICTS IN GHANA: THE CASE OF KPANDAI DISTRICT

ABSTRACT Local government systems are created by various governments across the world to enhance broad participation of citizens in the process of governance, improve on the quality of lives of these citizens and to hopefully reduce fiscal burdens of states. In Ghana, to achieve these objectives, the local governments (District Assemblies) are empowered under the Local Government Act 462, 1993 and the Constitution of Ghana (1992) to mobilize revenue within their jurisdictions. District Assemblies, particularly the newly created ones, must have effective internal revenue bases to enable them compel development in an accelerated fashion. However, whether and to what extent the revenues generated by these new districts are actually used to achieve that development have become an issue of concern in recent times, especially in Ghana where the fragmentation of local government is an ongoing agenda. This study therefore examined the impact of revenue mobilization on the development of newly created districts in Ghana, using Kpandai District as a case study. The study used the mixed approach, in which both quantitative and qualitative methods were used to establish the relationship between revenue mobilization and development in Kpandai District. A total of 170 questionnaires were administered alongside seven interviews of top officials of the district for the required primary data, which is complemented by the secondary data to enhance this study. The researcher employed and combined two suitable theories – Kelly’s (2000) Analytical Framework on Revenue Mobilization and the Model of Integrated Rural Development – to aid in the analyses of the data gathered. The findings of the study are that: the district is unable to raise adequate revenue to meet its developmental responsibilities. For instance, in 2015, the district was able to raise only GH¢ 4,538,382.34 out of the budgeted amount of GH¢ 8,885,179.80 representing 51.1% of their budget and this translated into low development. Consequently, the district, within a threeyear period, provided eight health centres instead of eleven, one hospital instead of two, and education of the people on balanced diet was 0.2% out of the targeted 15% in 2014, among other indicators. This situation resulted from such factors as inadequate records on data and the sources of revenues, non-enforcement of bylaws regarding revenue mobilization, inadequate and ineffective revenue collectors, and lack of commitment and political will on the part of top officials. Other factors include poverty and ignorance of civic responsibility. The Kpandai District Assembly (KDA) therefore needs to beef up efforts towards improving the overall performance of the district in revenue mobilization and development. To strengthen the link between revenue efforts and development, it is suggested that qualified and committed leadership and personnel should be hired, motivated, well equipped and retained.