Management of Revenue Collection Under Decentralization in Uganda A Case Study of Lki-Lki Sub-County Pallisa District 20002/2004

TABLE OF CONTENTS

Page

TOPIC ................................................................................... .

MOTTO................................................................................... ii

ACKNOWLEDGEMENT . . . . . . . . .. . .. . . . . . . . . . . .. . . . . .. . . . . . . . .. . . . . .. . .. . . . . .. . .. . .. iii

DECLARATION . . .. . . . . . . . .. . .. . .. . .. . . . . .. . . . . . . . .. . .. . . . . . . . .. . .. . .. . . . . .. . .. . .. . . . . . iv

TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. v

CHAPTER ONE

INTRODUCTION

1. Introduction . . . . . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.1 Background of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 5

1.2 Location of the Research . . .. .. . .. . .. .. . .. . . . . .. . . . . . . .. .. . . .. .. . . . . .. .. .. 8

1.3 Objectives of the Study .. .. . .. . .. . .. .. . .. .. . .. .. .. . .. .. .. .. . . .. . .. .. .. .. .. 10

1 .4 Outline of the Study .. .. .. .. . .. . . .. . .. .. .. .. .. . . .. . .. .. .. . .. . .. .. . . . .. .. .. .. 11

1.5 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 12

2.

1.5.1 Research Type .. .. . .. ..... . . ... .. ... ... . .. ... .... ... .. ...... ... .... 12

1.5.2 Source of Data..................................................... 12

1.5.3 Data collection techniques . . . . .. .. . . .. .. .. . . .. . . .. .. .. .. .. .. .... 13

1.5.4 Data Analysis .. .. .. . . . .. . .. . .. .. . .. .. .. .. . . . .. . .. . .. .. . .. .. .. . . . . .. 13

CHAPTER TWO

LITERATURE REVIEW

Literature Review ........................................................... . 15

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . ... 15

2.2 Decentralization of power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15

2.2.1 Meaning of decentralization . . .. . .. . . . . .. . .. . . . . .. . .. . .. . .. . . . . .. 15

2.3 Actors in service delivery under decentralization . . . . . .. . .. . .. . . . . ... 19

2.3.1 Local government . . . . . .. . . . . . . . .. . . . . .. . . . . . . . . . . .. . .. . ... .. . .. . . . . . 19

2.3.2 Non-government organizations . . . . . . . . . . . . . . .. . .. . .. . .. . .. . . .. . 20

2.3.3 Private sector........................................................ 21

2.3.4 Community based organization . . . . . .. . .. . .. . .. . .. . .. . .......... 21

2.3.5 Donors .... .......... .. ... .... ... .. .... .. . .. ... ... . ... ......... ... ... .. 22

2.4 Sources of local government revenue . .. . . . . . . . . .. . . . . .. ....... .. . .. . . 22

2.4.1 Budget estimates of revenue and expenditure ............ .

2.4.2 A Chart showing the highest source of revenue 2003/2004

2.4.3 A Chart showing the highest source of revenue 2004/2005

2.4.4 More revenue source & financial mobilization in lki-lki .....

25

31

32

33

2.5 Challenges of management of revenue collection . . . . . . . . . . . . . . . . . .. 34

2.6 Solutions to challenges . ... . . . . .. . .. . .. . ... .. . .. . . . . . . ... . .. . ..... .... .. . ... 36

2.6.1 A line graph showing monthly %ge of revenue

Income in lki-lki . ... .......... ......... .. ............................ 38

2.7 Conclusion . ... . .. . . . . . . . .. ... . .. . .. . .. . .. . .. . .. . .. . . . . .. . .. . .. . .. . .. . .. .... ... 39

3.

CHAPTER THREE

DATA ANALYSIS

Introduction ................................................................ . 40

3.1 An overview of lki-lki sub county management of revenue

Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

3.1.0 A pie chart showing percentage expenditure of revenue

Collections in lki-lki sub county................................ 41

3.1.1 The administrative structure of local government in

Uganda.............................................................. 43

3.2 Functions of local governments in management of revenue

collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

CHAPTER FOUR

FINDINGS

4. Introduction . . .. . ... . .. . .. . .. . .. . .. .. . .. . . .. . .. . . . . .. . .. . .. . .. . .. . .. . .. . .. . . 46

4.1 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

4.2 General conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 50

4.3 Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. .. 52

4.4 Bibliography . . .. . . . . .. . .. . . . . . . . . . . . . . . . . .. . . . . .. . .. . .. . . . . .. . .. . . . . . . . .... 53

APPENDIX I . . .. . .. . . . . .. . .. . .. . .. . .. . .. ... . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . 55

APPENDIX II ................................... :. . .. . . . . .. . .. . .. . . . . . . . . . . . .. .. . .... 56