Effect of Accountability and Transparency on Public Expenditure Management and Internally Generated Revenue in Adamawa State Local Governments

ABSTRACT

This study examines the effect of accountability and transparency on public expenditure management and internally generated revenue in Adamawa State Local Governments. The Population of this study is the entire twenty one (21) local governments councils in Adamawa state, out of which a sample of 14 local governments were drawn using stratified random sampling technique. The study used both primary and secondary data. Panel regression techniques and Structural Equation Model (SEM) are used in testing the hypotheses using STATA and AMOS respectively. The study established that there is significant positive relationship between capital expenditure and Internally Generated Revenue (IGR) of local governments in Adamawa state. The findings also established that accountability and transparency moderate the relationship between government expenditure and IGR. Capital expenditure contributed significantly to IGR than recurrent expenditure, though the amount of recurrent expenditure in the local government is generally higher than the capital expenditure. IGR is contributing less than 22% of the total revenue to the local governments. Thus, the study therefore recommends that local government authorities in Adamawa State should use their resources with high sense of prudence, accountability and transparency in incurring capital expenditure on agriculture and natural resources, roads, rural electrification, market expansion and maintenance, primary health care, education, and water resources and supply. This will enhance commercial activities, internally generated revenue and expenditure control in the local governments, thereby reducing their over dependency on statutory allocation. The study also recommends for the need of full disclosure as well as monthly and quarterly performance reporting on IGR and budget implementation in the local governments. This will enhance accountability and transparency on expenditure management and IGR in the local governments. 


TABLE OF CONTENTS

TITLE PAGE - -

DECLARATION -

CERTIFICATION -

APPROVAL PAGE-

DEDICATION -

ACKNOWLEDGMENT

TABLE OF CONTENT

LIST OF TABLES -

LIST OF FIGURES -

ABSTRACT- -

CHAPTER ONE: INTRODUCTION:

  1. 1.1  Background to the Study - -

  2. 1.2  Statement of the Research Problem -

  3. 1.3  Objectives of the Study - -

  4. 1.4  Research Hypotheses of the study -

  5. 1.5  Scope of the Study - - -

  6. 1.6  Significance of the Study

    CHAPTER TWO: REVIEW OF RELATED LITERATURE:

    1. 2.1  Introduction - - -

    2. 2.2  The Concept of Accountability

      2.2.1 Approaches to Accountability

    1. 2.2.2  Principles of Accountability and Transparency

    2. 2.2.3  Achieving Accountability in the Public Sector

    3. 2.2.4  The Concept of Transparency - 

      2.2.5  Moderating Role of Accountability and Transparency on Financial Control 

      2.2.6  The Concept of Revenue

  1. 2.2.7  Strategies for Revenue Generation in Local Government 

  2. 2.2.8  Relationship between Accountability, Transparency and Expenditure Management

  1. 2.2.9  Expenditure and Internally Generated Revenue Relationship 

  2. 2.2.10  Limiting Factors in Revenue Generation Efforts of Local Government 

  3. 2.2.11  Financial Memorandum on Revenue and Accountability in Nigeria 

  4. 2.2.12  International Public Sector Accounting Standard (IPSAS) Provision on Revenue

    2.2.13 Good Governance and Accountability in Local Government Administration

    2.3 Empirical framework on Accountability and Transparency

    2.4 Theoretical Framework - - 2.4.1 Commander theory 

  1. 2.4.2  Agency theory - - -

  2. 2.4.3  Public Expenditure theory - -

    2.5 Concluding Remarks - -


    CHAPTER THREE: RESEARCH METHODOLOGY

  1. 3.1  Introduction - -

  2. 3.2  Research Design -

  3. 3.3  Population of the Study

  4. 3.4  Sample Size and the Sampling Technique of

  5. 3.5  Sources and Methods of Data Collection

    3.5.1 Questionnaire Administration - -

    3.6 The Variable of the study and their Measurements

  1. 3.6.1  The Dependent Variable

  2. 3.6.2  The Independent Variables

  3. 3.6.3  The Moderating Variables

    3.7 Techniques for Data Analysis-

  1. 3.7.1  Panel Regression Techniques -

  2. 3.7.2  Structural Equation Modeling-

  3. 3.7.3  The Moderating Effect -

  4. 3.7.4  Multi-Group Analysis of Moderating Effect

CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSION:

4.1Introduction to the Study

4.2 Results and Discussion - -

4.2.1 Results from Panel Estimations - -

4.2.2: Testing of Hypotheses

4.3 Results from the Structural Equation Models (Analysis of Primary Data) 

4.3.1  Descriptive Statistics -

4.3.2  Measurement Model 

4.3.3  Structural Model 

4.3.4  Multi-Group Analysis of Moderation effect

4.3.5  Hypothesis testing on the Moderating Effects

4.3.5.1 Accountability as the Moderating Variable (the overall model)

4.3.5.2 Individual Paths Analysis - - - -

4.3.6 Transparency as the Moderating variable - -

4.3.6.1 Individual Paths Analysis

4.4  Summary of Major Findings

4.5  Implications of the Findings


CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary - - - -

5.1.1 Summary of the Work Done - -

5.2  Conclusion - - - -

5.3  Recommendations - - -

5.4. Frontier for Further Research - -

REFERENCES - - -

APPENDICES - - -

LIST OF TABLES

Table 3.1 The Population of the study

Table 3.2 Sample of the Study

Table 3.3 Index category and the level of acceptance of every index

Table 4.1 Proportion of IGR to Total Revenue

Table 4.2 Estimates of Capital Expenditures on IGR

Table 4.3 Estimates of Capital Expenditures Components on IGR

Table 4.4 Index category and decision rule of SEM -

Table 4.5 Assessment of normality - - - -

Table 4.6 Pearson Correlations - - - -

Table 4.7 Pre-estimation test of model fitness, reliability and validity

Table 4.8: Causal relationship of IGR against Capital and Recurrent Expenditure

Table 4.9: Model Summary (CMIN)

Table 4.10: Nested Model Comparisons

Table 4.11: Regression Weights

Table 4.12: (Group number Regression Weights

Table 4.13: (Group number Model Fitness Summary (CMIN)

Table 4.14: Nested Model Comparisons


LIST OF FIGURES

A model for studying the relationship between Capital Expenditure and Internally generated revenue. Accountability as moderator

A model for studying the relationship between Recurrent Expenditure and Internally Generated Revenue. Accountability as moderator 

A model for studying the relationship between Capital Expenditure and Internally generated revenue. Transparency as moderator

A model for studying the relationship between Recurrent Expenditure and Internally generated revenue

Transparency as moderator

Trend analysis of Local government’s IGR, REX AND CEX

Trend analysis of Recurrent Expenditure Components -

Trend analysis of Internally Generated revenue and Statutory Allocation 84

Factor Loadings and Covariance of Latent Constructs of IGR, CEX and REX 

Structural Model on the relation between the dependent variable
IGR and the independent variables Capital and Recurrent Expenditures 




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APA

Abba, M (2021). Effect of Accountability and Transparency on Public Expenditure Management and Internally Generated Revenue in Adamawa State Local Governments. Afribary. Retrieved from https://tracking.afribary.com/works/effect-of-accountability-and-transparency-on-public-expenditure-management-and-internally-generated-revenue-in-adamawa-state-local-governments

MLA 8th

Abba, Mohammed "Effect of Accountability and Transparency on Public Expenditure Management and Internally Generated Revenue in Adamawa State Local Governments" Afribary. Afribary, 21 Feb. 2021, https://tracking.afribary.com/works/effect-of-accountability-and-transparency-on-public-expenditure-management-and-internally-generated-revenue-in-adamawa-state-local-governments. Accessed 26 Nov. 2024.

MLA7

Abba, Mohammed . "Effect of Accountability and Transparency on Public Expenditure Management and Internally Generated Revenue in Adamawa State Local Governments". Afribary, Afribary, 21 Feb. 2021. Web. 26 Nov. 2024. < https://tracking.afribary.com/works/effect-of-accountability-and-transparency-on-public-expenditure-management-and-internally-generated-revenue-in-adamawa-state-local-governments >.

Chicago

Abba, Mohammed . "Effect of Accountability and Transparency on Public Expenditure Management and Internally Generated Revenue in Adamawa State Local Governments" Afribary (2021). Accessed November 26, 2024. https://tracking.afribary.com/works/effect-of-accountability-and-transparency-on-public-expenditure-management-and-internally-generated-revenue-in-adamawa-state-local-governments