The Effects Of Fiscal Decentralization On Revenue Performance In Local Governments Of Uganda

Abstract

With the aim of effectively coping with the public’s ever-increasing burdens and to decrease the operation expenditures essential in offering appropriate public services reliably, nationwide administrations must adjust to the diverse and multifaceted alterations stirring universally today i.e, decentralization. This article attempt to assess the impact of fiscal decentralization in local governments (LGs) in terms of revenue performance. This study involves analyzing the available data presented on local and national budget performance for a period from 2003 to 2016 following transparency measure which analyses the degree to which execution processes indicators exist and are exposed in budget papers throughout the administrative units in a government; these may consist of sectional financial plan requirements, the policymakers’ financial plan, executives, operational financial plan official papers, and trimestral and yearbook reports. Findings revealed that an increase in domestic revenue collections by LGs led to an increase in National budget since there was significant improvement in the trend of LGs revenue collections and National budget. Since decentralization policy played a significant role by giving mandate to the LGs to collect local revenue and a proportion of this revenue is used to fund part of the National budget decentalisation policy should be reinforced in Uganda.