Dissertation (MA Business Administration)This study aimed to examine the effectiveness of Fiscal Decentralization (FD) on service delivery in Local Government Authorities, taking Dodoma Municipal council as a case study. Specifically, this study intended to examine the institutional capacity of the municipal council and the community, benefits of the FD and Obstacles to FD on service delivery. Based on the sample of selected wards, data were collected to assess the impacts of fiscal decentralization on services delivery at grassroots levels. The results revealed that first, political pressure, institutional capacity, coordination of the central government and community participation were the key determinants of successful FD. Second, the benefits of FD were reported to be very significant in the areas of education, health and water services; the majority of people rely upon them for their daily living. Third, the effectiveness of FD was reduced by a number of factors but not limited to corruption, low awareness among the community and poor management of funds. The study concludes that FD would have been very beneficial to the community if the community were made to own the decision making related to how to raise funds and where to commit funds among the many projects. This study recommends that the government should improve the funds channeling systems whereby community participation and regular audit should be the primary focus. These measures would create a conducive environment for the FD to achieve its objective and hence improve the quality of life for every citizen.