Institutional Capacity and Local Government Revenue Collection in Kira Town Council Wakiso District Uganda

ABSTRACT 

The study was set out to assess Institutional capacity on local government revenue generation and service delivery in Local Government in Kira Town Council, Wakiso district- Uganda. The objectives of the study were; to assess whether there is technical capacity to generate and handle the local government revenue, analyze whether there is management capacity to handle the generated local government revenue and to assess whether there is planning capacity in Kira Town Council concerning local revenue generation. In the study, a sample was taken from the staff of Kira Town Council administration and a sample size of 197 respondents were considered which was done through questionnaires, Both primary and secondary sources of data collection were used. Tables and frequencies were used to analyze the findings. Tools of data analysis used included frequency count for determining the profile level of respondents, social package for social science (SPSS) descriptive statistics showing the mean and standard Deviation, Likert scale for response rating and Pearson linear correlation coefficient was used to test the null hypothesis, and the following findings were revealed: The findings revealed a positive relationship between institutional capacity and local government revenue generation. The study recommended that should train tax collectors and workers, local council should engage them in educating the people about the role of taxes and why people need to pay them and also monitoring and evaluation from the top administrators should be done. In conclusion, institutional capacity affect local government revenue collection. The gap in the management and technical capacity are responsible for the low yields of the locally generated government revenue in Kira Town Council.

TABLE OF CONTENTS

Contents

ACKNOWLEDGEMENTS

APPROVAL

DEDICATION

DECLARATION . iv

TABLE OF CONTENTS v

LIST OF TABLES ix

LIST OF ACRONYMS x

ABSTRACT xi

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1.1 Background of the Study

1.1.1 Historical Perspective 1

1.1.2 Theoretical Perspective 4

1.1 .3 Conceptual Perspective 4

1 .1.4 Contextual Perspective 5

1 .2 Problem Statement 6

1 .3 General Objective! Purpose of the study 7

1.4 Specific Objectives 7

1.5 Research Question 7

1.6 Hypotheses that are tested: 7

1.7 Significance of the Study 8

1.8 Scope of the Study 9

1.8.1 Geographical Scope 9

1 .8.2 Theoretical Scope: 9

1.8.3 Content Scope 9

1.8.4 Time Scope 10

1.9 Operational definition of Key Terms 10

CHAPTER TWO 11

LITERATURE REVENUE 11

2.0 Introduction 11

2.1 Theoretical Review 11

2.2 Conceptual Frame work 1 1

2.3 Assess the institutional capacity of revenue clerks on revenue collection in Kira Town Council local government 12

2.3.2 Evaluate how local government revenue collection is done inKira Town Council. 16

2.3.3 The relationship between institutional capacity and revenue collection in Kira Town Council 21

CHAPTER THREE 24

RESEARCH METHODOLOGY 24

3.0 Introduction 24

3.1 Research Design 24

3.2 Research Population 24

3.3 Population Sample size 25

3.4 Sample Procedure 25

3.5 Research Instruments 26

3.5.1 Questionnaires .26

3.6 Validity and Reliability of the instruments 27

3.7 Data Gathering procedure 27

3.8 Data Analysis 28

3.9 Data presentation, Discussion and Interpretation 28

3.10 Ethical Consideration 28

3.10.1 Informed Consent 28

3.10.2 Authorization 28

3.10.3 Confidentiality 29

3.11 Limitations of the Study 29

CHAPTER FOUR 30

PRESENTATION AND INTERPRETATION 30

4.0 Introduction 30

4.1 Demographic Characteristics of the Respondents 30

4. 2 Assess the institutional capacity of revenue clerks on revenue collection in Kira Town Council local government 33

4.3 To evaluate how local government revenue collection is done in Kira Town Council. 37

4.4 The relationship between Institutional capacity and local revenue collection in Kiar Town Council, Wakiso district — Uganda 41

CHAPTER FIVE 44

DISCUSSION OF MAJOR FINDINGS, CONLUSIONS AND RECOMMENDATIONS OF THE STUDY 44

5.0 Introduction 44

5.1 Discussion of the major findings .44

5.1.1 Assess the institutional capacity of revenue clerks on revenue collection in Kira Town Council local government 44

5.1.2 To evaluate how local government revenue collection is done in Kira Town Council 46

Revenue collection Kira Town Council Local Government, came out to be (mean = 2.58), which confirms that the level Revenue collection in Kira Town Council Local Government stands at moderate level 46

5.1.3 The relationship between Institutional capacity and local revenue collection in Kiar Town Council, Wakiso district — Uganda 47

5.2 Conclusions 48

5.2.1 Assess the institutional capacity of revenue clerks on revenue collection in Kira Town Council local government 48

5.2.2 The relationship between institutional capacity and revenue generation 49

5.3 Recommendations 49

5.3.1 Leadership Capacity 49

5.3.2 Competence of Revenue Clerks 49

5.3.3 Tax Compliance 49

5.4 Contributions to Knowledge 50

5.5 Area for further research 50

REFERENCES 51

APPENDICES 55

APPENDIX 1: QUESTIONNAIRE 55

APPENDIX III: ESTIMATED BUDGET 61

APPENDIX IV: WORK PLAN 62