Dissertation (MA Business Administration)This study was conducted to investigate the contribution of projects funded by capital development grants on socio-economic development in Dodoma region. The main purpose of the study was to asses the impact of projects funded by capital development grants on economic development in Dodoma region. This study used a sample size of 135 respondents (60 local government officials, 3 village chairman and 74 village residents). A cross-sectional survey method was adopted in order to collect data from various respondents. Data collection was carried out by the use of interviews and well structured and pre-tested questionnaires. Both primary and secondary data were collected. Qualitative and quantitative data were gathered and analyzed by using Statistical Package for Social Sciences (SPSS) and Microsoft Excel computer programmes in order to get frequencies and percentages. This study identified that the capital development grant is not only important but also facilitate effective project implementation and hence socio-economic development in the study area. The study also found that despite some associated challenges, the capital development grant was found to be effectively used in development projects. From the study it was drawn that the capitation grants significantly contribute to socio-economic development in the study area through water projects, education projects, health projects and construction projects. However, the limited involvement of community members in various projects financed by capitation grants from an earlier stage is still a major challenge facing local government authorities.