Dissertation (MA Public Administration)The purpose of this study was to assess financial motivation and health services delivery in health institutions under the local government authority. Ilala Municipality was taken as the case study, name of the healthy facility which were involved are Amana, Mnazi Mmoja, Buguruni, Magereza Ukonga and IDC Clinic. Randomly selected were 80 respondents as a sample size of the study so as to get relevant and reliable information concerning the study and probability and non probability sampling procedures was utilized to get this sample. Primary data and secondary data were utilized whereby social survey and interview used as method of data collection. Also questionnaire and interview schedule were utilized to get primary data. Data analysis was employed both qualitative and quantitative; whereby SPSS Version 16 also employed. This study reveals that employers do not provide enough motivation to their employees. Consequently, they do not perform better in their jobs and finally provide non quality public health services in different public sector. The findings reveal that; there is lack of motivation, poor working conditions, poor pay, poor management or supervision. The study recommends that the government should provide allowance at an appropriate time and incorporates the principles of rewards, in a sense that rewards or punishments which are provided on time can be much beneficial in motivating a person in order to attain good performance of the workers. Eventually, the employers should give their employees the required authority, equipment and information needed to assist them in the performance of their assigned task with greater independence as well as having the self confidence to effectively and efficiently perform new task.