PUBLIC FINANCIAL MANAGEMENT AND SERVICE DELIVERY AT THE LOCAL GOVERNMENT LEVEL: A CASE OF EJURA SEKYEDUMASE MUNICIPAL ASSEMBLY IN THE ASHANTI REGION OF GHANA

ABSTRACT 

Public financial management concerns the efficiency and effectiveness of the use of public resources based on approved budgets. The purpose of this study was to assess the influence of public financial management and service delivery  at  the  local  government  level  using  Ejura  Sekyedumase  Municipal Assembly  in  the  Ashanti region  of Ghana as a case.  The  specific  objectives were to establish the relationship between policy based budgeting and service delivery;  determine  the  extent  to  which  budget  credibility  support  service delivery;  and  the  influence  of  revenue  generation  and  allocation  on  service delivery. A  descriptive  study  design  and  census  method  was  used.  Data  was collected not only from the budget and financial reports of the Assembly but also by administering questionnaires to 11 senior staff and their assistants and 62  assembly  members  in  the  Municipality.  The  data  was  analysed  using descriptive statistics, correlation, paired sample t-test and regression. The  study  found  that  there  was  a  strong  relationship  between  policy based budgeting and service delivery at the Assembly. The credibility of the Assembly’s  budget  in  terms  of  fiscal  discipline  was  strong  but  weak  when actual budgetary releases were matched to the voted budgets. The Assembly was not able to meet its budgeted revenue. The study also realised that positive direct relationships exist between revenue allocation and service delivery. The study therefore recommends that the Assembly strengthens its internal control mechanisms  and  look  inwardly  to  improve  its  internally  generated  fund collection to support service delivery at the local level.