Abstract:
It is imperative for local governments to ensure that they operate under prudent measures to sustain and improve the conditions of its members. A well meaning assembly that faces challenges in relation to its revenue mobilization is expected to set up pragmatic controls and measures to revamp the situation, one of which is revenue outsourcing. The study sought to find the importance of revenue and examine the impact of revenue outsourcing on Kumasi Metropolitan Assembly (KMA). A cross sectional survey with a sample size of 100 staffs from KMA was used in the process aided by a purposive sampling procedure to help get the requisite data without wasting time on areas that may not be crucial to the study.
Description:
The role of government and the capacity of governments to raise taxes for the purpose of financing economic development have preoccupied economists and policy makers for a long time. Government Revenue includes all amounts of money received from sources outside the government entity. These sources include taxation, fees, fines, inter – governmental grants or transfers, securities sales, mineral rights, and resources rights, plus any sales that are made. The Revenue from these sources is appropriated for the payment of the public expenses and the provision of public infrastructure and services (Agyapong , 2012).A sound revenue system for local governments is an essential pre-condition for the success of fiscal decentralization. In addition to raising revenues, local revenue mobilization has the potential to foster political and administrative accountability by empowering communities. However,prescriptions deriving from the theory and from good international practice impose huge constraintson the choice of revenue instruments for local governments (Fjeldstad & Heggstad, 2012).
