Government Revenue Collection And Socio-Economic Growth In Somalia A Case Study Of Puntland Bosaso District

TABLE OF CONTENTS

APPROVAL I

DEDICATION Ii

ACKNOWLEDGEMENT iv

LIST OFTABLES

LIST OF FIGURES vi

ABSTRACT viu

CHAPTER ONE 1

1.0 Introduction 1

1.1 Background to the Study 1

1.2 Problem Statement of the Study 4

1.3 Purpose of the Study 4

1.5 Research Questions

1.6.0 Scope of the Study

1.7 Significance of the Study 6

1.8 The conceptual framework 6

1.9. Limitations of the study 7

CHAPTERTWO 8

LITERATURE REVIEW 8

2.0 Introduction 8

2.1.0 Concepts, opinions and ideas from authors 8

2.1.2 Social - Economic growth 9

2.2.0 Review of the related literature 10

2.3 Relationship between Revenue Collection and Social - Economic growth in Local

Government 18

2.4.0 Related studies 21

VII

CHAPTER THREE .23

METHODOLOGY 23

3.0 Introduction 23

3.1 Research Design 23

3.2 Survey Population 23

3.3 Sample Size and Sampling Procedure 23

3.4 Data Sources 24

3.5 Data Collection Instruments 25

3.6 Data Processing, Analysis and Presentation 26

3.7 Limitations to Study 26

CHAPTER FOUR 28

PRESENTATION, ANALYSIS AND DISCUSSION OF FUNDINGS 28

4.0 Introduction 28

4.1 General Information about Respondents 28

Source of Revenue collection in Bosaso district 34

CHAPTER FIVE 50

SUMMARY OF FINDINGS, CONCLUSION, RECOMMENDATIONS AND AREAS

OF FURTHER STUDY 50

5.0 Introduction 50

5.1. Summary of the findings 50

5.2. Conclusion 51

5.3. Recommendations 51

5.4. Areas forfurther study 52

REFERENCES 53

APPENDICIES 56

APPENDIX I 56

APPENDIX II 62

APPENDIX III 63

ABSTRACT

The study was based on government revenue collection and socio-economic growth in

Somalia a case study of Puntland Bosaso District. In Social - Economics, ~Social -

Economic growth” or “Social - Economic growth theory” typically refers to growth of

potential output, i.e., production at ‘full employment”. As an area of study, Social

Economic growth is generally distinguished from development Social - Economics. The

former is primarily the study of how countries can advance their economies.

The objectives of the study were to examine different local revenue collection sources

in Bosaso District., to establish the level of Social - Economic growth in Bosaso District.

and to establish the relationship between local revenue and Social - Economic growth in

local governments.

The methods used in this research study were all about questionnaires to collect data

structured and unstructured questionnaires were extended to respondents which

needed short and precise answers. The researcher used as well, Data was collected,

analyzed using statistical computer package called SPSS, to examine and determine

degree of relationship between local revenue collection and Social - Economic growth in

local government case study of Bosaso District Ban Region.

The study findings established that Bosaso district collects local revenue from different

sources and they include licenses and permits, parking fees, fines and penalties, rent

and rates, market dues in order to deliver services to the people. There has been low

local revenue collection in Bosaso district and this has been due to the harshness of tax

collectors, high administrative expenses corruption practiced by revenue officers

,inadequate sources of revenue, political intervention for example tender defaulters who

supported politicians during campaigns are being protected by tax authorities, poor

enforcement of rules and procedures of collecting revenues, tribalism, low incomes and

wealth which reduces the tax base thus leading to low local revenue collection and thus

low Social - Economic growth in Bosaso district.

The research recommended that markets and other rental places should be fenced off

for the case of locating operations. So in this case those found operating outside the

fenced off places should be punished accordingly. Bosaso district should regularly

conduct field surveys for taxis, buses and other vehicles operating in gazetted areas so

as to set realistic reserve prices. Revenue collection in Bosaso district should be

privatized by giving out tenders to individuals or companies to collect revenues on

behalf of Bosaso district local government to reduce the increasing rate of tax defaulters.