The impact of revenue mobilization on service delivery: a case study of oforikrom municipal assembly (ofma)

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The study through an in-debt explanation of the relationships, challenges and perceptions surrounding revenue collections and service provisions, shed light on the critical role revenue mobilization plays in influencing service delivery for Oforikrom Municipality (OFMA). To achieve the objectives, the study adopted mixed methods research design and gathered quantitative and qualitative data using questionnaires, interviews and document analysis. Purposive sampling was used where 200 respondents were selected, 50 staff of OFMA and 150 residents. The study revealed that Grants, Rates, Lands and Royalties, Fees, Fines, Licenses, Rent and Miscellaneous Charges are the major sources of revenue for the Assembly. The positive correlation between revenue and expenditure underscored the pivotal role of revenue generation in resource allocation. Significant respondents strongly agreed on the relationship between revenue mobilization practices and service delivery outcomes. Qualitative insight emphasized challenges in revenue mobilization, including unwillingness of rate payers, inadequate logistics, lack of technology and proper data. The study concludes that the effectiveness of revenue mobilization practices significantly influences service delivery quality; OFMA’s revenue mobilization mechanism demonstrated inefficiencies and ineffectiveness, contributing to suboptimal service delivery. The study recommends the urgent need for targeted interventions to enhance revenue collection including deployment of technology, transparency and accountability, sensitization of rate payers and improving staff capacity. Legislative reforms and community engagement are also recommended to tackle identified challenges and improve service delivery. In essence, this thesis illuminates the intricate relationship between revenue mobilization and service delivery. By addressing the identified challenges and implementing the suggested recommendations, OFMA and similar institutions can work toward more efficient revenue management, ultimately leading to enhanced service delivery and greater resident satisfaction
This thesis is submitted in partial fulfillment of the requirements for the award of master of science in accounting and finance