Fiscal Effect of Decentralization in Kicukiro District Rwanda

TABLE OF CONTENT

DECLARATION ..................................................................................................................... II

APPROVALS ......................................................................................................................... Ill

DEDICATION ...................................................................................................................... IV

ACKNOWLEDGEMENTS .................................................................................................... V

TABLE OF CONTENT ........................................................................................................ VI

LIST OF TABLES .................................................................................................................. X

LIST OF FIGURES ............................................................................................................... XI

LIST OF ACRONMYS ........................................................................................................ XII

ABSTRACT ........................................................................................................................ XIII

CHAPTER ONE

INTRODUCTION .................................................................................................................... !

1.0 Background to the study ..................................................................................................... !

1.2 Statement of the problem .................................................................................................. .4

1.3 Objectives of the study ....................................................................................................... 5

1.3.1 General objective ............................................................................................................. )

1.3.2 Specific objectives ........................................................................................................... 5

VI

1.4 Research questions ............................................................................................................. 5

1.5 Scope of the study .............................................................................................................. 6

1.6 Significant of the study ....................................................................................................... 7

CHAPITER TWO

LITERATURE REVIEW ......................................................................................................... 8

2.0 Introduction ........................................................................................................................ 8

2.1 Decentralization: the concept ............................................................................................. 8

2.2 Fiscal decentralization ...................................................................................................... ! 0

2.3 The structure of decentralization ...................................................................................... 11

2.4 The Primary Unit of Decentralization .............................................................................. 12

2.5. Identifying new sources of revenue ................................................................................. 

2.6 Tax incidence ................................................................................................................... 13

2.7 Fiscal Decentralization as a concept of development ...................................................... 14

2.8 Fiscal and financial decentralization ................................................................................ 15

2.9 Fiscal issues in decentralization ....................................................................................... 16

2.10: The Need for fiscal or financial decentralization .......................................................... 19

2.11 Independent sources of finance for local governments .................................................. 20

2.12. Conceptual framework .................................................................................................. 21

2.13 Dangers of decentralization ............................................................................................ 23

2.14 Monitory and fiscal policies ........................................................................................... 24

2.15 Devolution Decentralization to Sub national Governments .......................................... 25

2.16 Conclusions .................................................................................................................... 26

VII

CHAPTER THREE

RESEARCH METHODOLOGY ..................................................................... 27

3.0 Research Design ............................................................................................................... 27

3.2 Sample design ................................................................................................................... 28

3.3 Methods of data collection ............................................................................................... 29

3.3.1 Questionnaire ................................................................................................................. 29

3.3.2 Observation ................................................................................................................... 29

3.2.3 lnterview ........................................................................................................................ 30

3.3 Data analysis .................................................................................................................... .30

3.4 Limitation of the study ..................................................................................................... 30

3.5 VARID1TY AND RELIABILITY OF RESEARCH INSTRUMENTS .......................... 31

CHAPTER FOUR

PRESENTATION. ANALYSIS AND INTERPRETATION OF FINDINGS ...................... 33

4.0 Introduction ...................................................................................................................... 33

4.1. General characteristics of respondents ............................................................................ 33

4.1.1 District earnings finance policy ..................................................................................... 34

4.2 Achievements of fiscal decentralization in Kicukiro distric.. ......................................... 38

4.2.1 Economic aspect of Kicukiro district ............................................................................ 38

4.2.2 The fiscal constrain of fiscal decentralization ............................................................... 38

4.2.3 Short comings in the old system of''centralized power" .............................................. 39

4.2.4 Problems encounter in implementation of Fiscal decentralization in Kicukiro distric .40

4.2.5. On accountability of the population to distric.. .......................................................... .40

viii

4.3 To evaluate the impotiance of fiscal decentralization in Kicukiro ................................. .42

4.3.1 On evaluation of cause of fiscal decentralization and financial management .............. 43

4.3.2 Evaluation on feed back do you find in fiscal decentralisation .................................... .43

4.3.3 On how tax is reviled had being use ............................................................................. .43

CHAPTER FIVE

SUMMARY, CONCLUSSIONS AND RECOMMENDATIONS ....................................... .48

5.0 Introduction ..................................................................................................................... .48

5. 1. Summary of findings ....................................................................................................... 48

5.2. Conclusions ........................................ , ............................................................................ 52

5.3. Recommendation ............................................................................................................. 53

REFERENCES: .................................................................................................. , ................... 54

APPEND EXES: ..................................................................................................................... 60

APPENDEXES A: TIME FRAME ........................................................................................ 60

APPENDICE B: DUDGETING FOR RESEARCH .............................................................. 61