An Evaluation of Effectiveness of Revenue Mobilization Strategies of Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana: A case study of Kumasi Metropolitan Assembly (KMA)

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2012
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Abstract
This study was conducted to evaluate the effectiveness of revenue mobilization strategies of Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana, Kumasi Metropolitan Assembly (KMA) as a case study. The objective of the study was to come out with strategies that can help KMA to generate enough Internal Generated Funds (IGFs) to meet its developmental needs. Areas considered under the challenges that KMA face included; insufficient IGFs, over reliance on District Assemblies Common Fund (DACF), corruption, inability to provide public needs, etc. A survey conducted using the staff and management of KMA, tax payers and other stakeholders in Kumasi revealed that the infrastructural projects provided by KMA are not adequate and do neither march revenues collected nor their demands for development. KMA is legally and politically doing nothing to motivate the residents to fulfill their financial obligations. There are so many revenue leakages involving KMA revenue collectors, senior officers of the Assembly and Assemblymen and women of the various Sub- metros. The conclusion drawn from the survey indicated that KMA is not sufficiently using fiscal decentralization to empower itself under Local Government Act, Act 462 (1993) for that matter it has not developed new and sustainable strategies to improve its performance in revenue mobilization. The Assembly like many local authorities in Ghana had tendered to over-rely on the District Assembly Common Fund to meet its capital expenditure. Another fact is that greater part of KMA’s IGFs goes into administration expenditure. KMA definitely is unable to meet its socio – economic and political obligations to consumers of public goods and services in the metropolis. It will continue to fail to satisfy its consumers so far as it does not develop new strategies and policies to improve its revenue mobilization. KMA also lacks reliable data base on traders that affect its budget formulation and implementation. A number of recommendations were made to KMA and these recommendations suggested strategies be taken to improve the revenue base of KMA. It is recommended that KMA should try to eliminate corruption, put in place reliable data base on properties and businesses, use of relationship marketing to reach out to stakeholder through meetings, seminars, conferences, forums, tax education and sensitization to know the problems of payment of taxes, rates, etc. and the challenges in revenue collection. KMA should also invest in hostel accommodation, shuttle transport, mortuary services, funeral services and other profitable ventures.
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A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Public Administration,
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