Abstract:
The success of decentralization efforts in developing countries, such as Ghana, is
closely tied to the capacity for robust infrastructure delivery at the local level, where
local governments are mandated to drive development but often operate on
shoestring budgets. This study critically examines the performance of Internally
Generated Funds (IGF) collection in the Ahafo Ano-South West District in Ghana,
with a specific focus on revenue trends from 2016 to 2022. Using time series data,
the study applies the Corrected Revenue Collection Index (CRCI) to assess how
well various revenue streams performed. The findings reveal a striking pattern
where property rates emerged as the most consistent and high-performing source of
IGF, while revenues from land royalties and administrative fees lagged
significantly. Rental income from lands and buildings, and licenses, showed
moderate but promising results. These disparities highlight the untapped potential
within local revenue systems and point to key areas for reform and strategic
investment. By offering new empirical insights, this study contributes meaningfully
to
the broader discourse on local government financing and sustainable
development. It underscores the urgent need for improved revenue mobilization
strategies and greater fiscal accountability to empower district assemblies in Ghana
and similar contexts to deliver on their developmental mandates. Strengthening IGF
collection is not just a financial necessity but a pathway to stronger and more self
reliant local governance.
