Assessment of revenue collection efficiency in local government authorities: the case of Tanga local government authorities
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Mzumbe University
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A Dissertation Submitted in Partial fulfilment of the Requirements for the
award for the Degree of Master of Business Administration
(Corporate Management) of Mzumbe University
This study was aimed at assessing the efficiency of revenue collection in Local Government Authorities, a case study of Tanga Local Government Authorities. The research questions were aimed at assessing the Revenue collection efficiency in Tanga LGAs, determining factors for revenue collection efficiency in Tanga LGAs and assessing the impacts of each factor on Revenue collection efficiency in Tanga LGAs. In this study, data was collected from 9 District Councils and 50 respondents of Tanga Region through documentary review and questionnaire methods. However, the collected data was analyzed by the use of DEA, Regression analysis, Descriptive statistics and Partial correlation. The findings of this study show that mean technical efficiency results in Tanga LGAs from 2007/08 to 2012/13 were are on average efficient. Also, the findings indicated that 2011/2012 the values of pure technical efficiency for Pangani District Council, Kilindi District Council, Korogwe Town Council and Korogwe District Council were higher than values of scale efficiency. However, this study discovered that 17 (34%) of the total respondents reported that trade openness/transparency is low in determining revenue collection in Tanga LGAs and 17(34%) of the total respondents reported that trade openness/transparency is moderate in determining revenue collection in Tanga LGA. Also 36(72%) of the total respondents reported that political interference in revenue collection is high in Tanga LGAs. Moreover, it was recommended that for efficiency and effectiveness of revenue collection in LGAs trade openness/ transparency is very important. Also, Tanga LGAs have to increase administrative capacity to access revenue potential for effective revenue collection in the authorities concerned. Furthermore, the issue of employee commitment in Tanga LGAs has to be taken into consideration for it is important in establishing and sustaining a professional and effective revenue administration.
This study was aimed at assessing the efficiency of revenue collection in Local Government Authorities, a case study of Tanga Local Government Authorities. The research questions were aimed at assessing the Revenue collection efficiency in Tanga LGAs, determining factors for revenue collection efficiency in Tanga LGAs and assessing the impacts of each factor on Revenue collection efficiency in Tanga LGAs. In this study, data was collected from 9 District Councils and 50 respondents of Tanga Region through documentary review and questionnaire methods. However, the collected data was analyzed by the use of DEA, Regression analysis, Descriptive statistics and Partial correlation. The findings of this study show that mean technical efficiency results in Tanga LGAs from 2007/08 to 2012/13 were are on average efficient. Also, the findings indicated that 2011/2012 the values of pure technical efficiency for Pangani District Council, Kilindi District Council, Korogwe Town Council and Korogwe District Council were higher than values of scale efficiency. However, this study discovered that 17 (34%) of the total respondents reported that trade openness/transparency is low in determining revenue collection in Tanga LGAs and 17(34%) of the total respondents reported that trade openness/transparency is moderate in determining revenue collection in Tanga LGA. Also 36(72%) of the total respondents reported that political interference in revenue collection is high in Tanga LGAs. Moreover, it was recommended that for efficiency and effectiveness of revenue collection in LGAs trade openness/ transparency is very important. Also, Tanga LGAs have to increase administrative capacity to access revenue potential for effective revenue collection in the authorities concerned. Furthermore, the issue of employee commitment in Tanga LGAs has to be taken into consideration for it is important in establishing and sustaining a professional and effective revenue administration.
Keywords
revenue collection efficiency