The impact of local government revenue collection on service delivery in Uganda: a case study of Entebbe Municipal Council

Abstract

The study examined the impact of local government revenue collection on service delivery in Entebbe Municipal Council. It focused on three specific objectives, 1) to examine the challenges faced by Entebbe municipal council in revenue collection, 2) to examine how revenue collection could be improved and 3) to critically examine the relationship between revenue collection and service delivery in the local government. The researcher used both qualitative and quantitative research designs with a sample of 150 respondents who included the staff of Entebbe municipal council. Qualitative data was obtained through questionnaires, interviews, and observation while quantitative data was obtained through computation and analysis. The study revealed significant challenges affecting revenue collection in Entebbe Municipal Council, including; poor tax collection systems, political interference, inadequate sensitization, traditional defaulting, and suspension of graduated taxes. The study highlighted several strategies to improve revenue collection, including; strengthening tax collection systems, community sensitization and education, motivating revenue collectors, reducing political interference, privatization of revenue collection, training and capacity building for revenue collectors, and enhancing taxpayer compliance. The study also revealed that there is a clear correlation between improved revenue collection and the ability to fund services like healthcare, road infrastructure, and waste management, which would directly improve the quality of life for residents in Entebbe. The findings highlight a direct link between revenue collection and service delivery: poor service delivery is often associated with declining revenue collection, while improved revenue collection leads to better service delivery. The researcher concluded that while local governments face challenges in revenue collection, these challenges are manageable. To improve service delivery, local governments must address the challenges in revenue collection. The researcher suggested that future studies should be conducted to analyze any other factors that affect revenue collection as well as service delivery in local governments.