Local Revenue Management and Service Delivery in Mityana Municipal Council, Uganda

This study was set to establish the Local Revenue Management and Service Delivery in Mityana Municipal Council, Uganda. It was guided by the following specific objectives, that included (i) to establish the relationship between local revenue planning and service delivery in Mityana Municipal Council. (ii) to examine the relationship between local revenue mobilisation and service delivery in Mityana Municipal Council. (iii) to asses the relationship between local revenue control and service delivery in Mityana Municipal Council. The study adopted a descriptive survey design .it used questionnaires, face to face interviews. The target population was 185 from which a sample size of 134 was derived. Hut tax was the first formal tax introduced in 1900 and Ugandans started paying customs duty as an indirect tax on all goods entering East Africa through Mombasa to Uganda. Uganda adopted a policy of decentralization way back in 1992 where Central government devolved functions and powers to local governments and were empowered to levy, charge, and collect fees as a means to generate local revenue. This study aimed to examine the relationship between local revenue management and service delivery in Mityana Municipal Council. The specific objectives were to establish the relationship between local revenue planning and service delivery, examine the relationship between local revenue mobilization and service delivery, and assess the relationship between local revenue control and service delivery. The study adopted a descriptive, correlational, and cross-sectional research design, using both quantitative and qualitative research approaches. The study population consisted of politicians, technical staff, and the business community of Mityana Municipal Council, with a total of 185 respondents including technical staff, politicians and business community. The sample size was determined to be 134 respondents, selected using simple random sampling and purposive sampling. The findings of the study revealed that local revenue in Mityana Municipal Council is collected through cash, bank, and third-party collection, with a majority collected through the bank. Effective budgeting was seen as important in identifying new revenue sources and supporting service delivery. Local revenue planning was found to have a positive relationship with service delivery of 0.307 correlation, as it helps in identifying revenue sources and minimizing collection costs. Local revenue mobilization was seen as lacking efficiency in generating enough revenue, but it was found to have a strong relationship with service delivery. Local revenue controls were perceived to be lacking in terms of expenditure limits and monitoring, but they were positively correlated with service delivery. Regression analysis showed that revenue planning, mobilization, and controls all had a positive impact on service delivery, with revenue planning explaining 62.1% of the variation, revenue mobilization explaining 45.2%, and revenue controls explaining 43.9%. Based on the findings, it is recommended that the Municipality focuses on improving revenue management practices, such as strengthening the tax system, implementing clear policies, and establishing limits on expenditure. Close monitoring, training, and tax audits should also be prioritized to enhance revenue compliance and collection.