Assessing the impact of internally generated funds on Developmental projects in Ghana: a case of Sunyani Municipal Assembly.

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Date
2016-08
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KNUST
Abstract
A major role of the central government in most emerging economies is to provide the needs of the people at the local level. In furtherance of this role, central governments set up sub-governmental structures such as Metropolitan, Municipal and District Assemblies at the local level. By large, local government bodies are empowered to undertake revenue mobilization functions to complement the developmental agenda of central governments. A primary source of revenue of local governmental bodies derives from the area of Internally Generated funds (IGF). Building on current literature, this research study was primarily undertaken to assess the capacity of a local governmental authority, the Sunyani Municipal Assembly in the mobilization of IGF. In particular, the research objectives were to examine the trends of the mobilization of IGF spanning 2010-2014, identify other potential sources of IGF, the challenges of revenue mobilization and the overall effect IGF has on developmental projects. The study employs both quantitative and qualitative research designs in its analysis of data. Both primary and secondary sources of data were adopted in the study. The secondary data was adapted from the official records of the Assembly pertaining to its collection and usage of IGF. The primary data was generated through interviews and questionnaires. Based on the outcome of the study, it was established that the Assembly has witnessed an increase in the trends of revenue generation over the sampling period. The potential sources of revenue were established to comprise, private hostels in the various tertiary campuses, mobile money vendors, betting companies, estate agents, and also to consider revaluation of properties at regular intervals. The challenges of revenue mobilization were found to be the lack of enforcement of tax regulations, misappropriation of funds, inadequate logistics and lack of trained personnel. Further it was found out that IGF play a key role in the execution of developmental projects such as clinics, classrooms and market buildings. From a policy perspective, the findings of the study suggest the need for the Assembly to train personnel for effective revenue mobilization, enforce tax regulations and punish corrupt officials.
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A Thesis Submitted To The School Of Business In Partial Fulfillment Of The Requirements For The Award Of Degree Of Master In Business Administration (Finance)
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