TABLE OF CONTENTS
DECLARATION
APPROVAL
DEDICATION jjj
ACKNOWLEDGEMENTS iv
ABSTRACT viii
CHAPTER ONE I
INTRODUCTION 1
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the Problem 2
1.3 Research purpose 3
1.4 Research Objectives 3
1.4.1 General objective 3
1.4.2 Specific objectives 3
1.5 Research Questions 3
1.6 Scope of the study 3
1.6.1 Geographical scope 3
1.6.3 Time scope 4
1.7 Significance of the study 4
1.7.1. Local Governments 4
1.7.2. Academicians 4
1.7.3. Researcher 4
1.7.4. Authorities
1.7.5. Administrators
1.7.6. Stakeholders 5
CHAPTER TWO 6
LITERATURE REVIEW 6
2.0 Introduction 6
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2.1 Theoretical review 6
2.2 Conceptual review 7
2.3 Conceptual frame work 10
2.4 Contextual review 11
2.4.1 Challenges in Local revenue collection 11
2.4. 2 Strategies for improving Local revenue collection 13
2.4. 3 Relationship between revenue collection and service delivery 15
2.5 Review ofrelated studies 17
CHAPTER THREE 19
METHODOLOGY 19
3.0 Introduction 19
3.1 Research design 19
3.2 Population of the study 19
3.3 Sample Size 19
3.4 Sampling Techniques 20
3.5 Sources of data 21
3.6 Data collection methods 21
3.6.1. Structured Interview 21
3.6.2. Structured observation 21
3.7. Data Collection Instruments 21
3.7.1. Interviews guide 22
3.7.2. Questionnaire 22
3.8 Validity of Research Instruments 22
3.8.1 Validity of Research Instruments 22
3.8.2 Reliability ofresearch Instruments 22
3.9 Measurement of Variables 23
3.10 Data processing and analysis 23
3.11 Limitations of the study 23
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CHAPTER FOUR .24
PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 24
4.0 Introduction 24
4.1 General Information about Respondents 24
4.2. Responses on the challenges of local revenue collection in Garowe local government 28
4.3 Responses on the strategies for improving local revenue in Garowe local government 31
CHAPTER FIVE 36
FINDINGS, CONCLUSION AND RECOMMENDATIONS 36
5.0 Introduction 36
5.1. Summary of the findings 36
5.1.1 Findings on the challenges of local revenue collection in Garowe local government 36
5.1.2 Findings on strategies for improving local revenues collection in Garowe local government.
36
5.2. Conclusion 37
5.3. Recommendations 37
5.4. Areas for further study 38
REFERENCES 40
APPENDIX I QUESTIONNAIRE 43
APPENDIX II INTERVIEW GUIDE 47
ABSTRACT This research work was based on the revenue collection and service delivery in Garowe Local Government-Puntland, Somalia. The objectives of the study were to examine the challenges faced by authorities in the collection of revenue, to examine how service delivery could be improved and to establish the relationship between revenue collection and service delivery in Garowe Local Government, The researcher used descriptive and exploratory survey research designs based on results from questionnaires, interviews and observation. Both qualitative and quantitative research designs were used in this study. Qualitative data were obtained through questionnaires, interviews and observation while quantitative data were obtained through computation and analysis. A sample size of 100 was from Garowe Local Government. The raw data that were collected from the field were scrutinized, and analyzed by editing, coding and employing descriptive statistics in order to give more meaning to the data. Findings showed that there were low local revenue collection in Garowe Local Government and this has been due to the harshness of tax collectors, high administrative expenses corruption practiced by revenue officers, inadequate sources of revenue, political intervention like tender defaulters who supported politicians during campaigns are being protected by tax authorities, poor enforcement of rules and procedures of collecting revenues, tribalism, etc. Moreover, the research findings showed that even though most of the challenges were inherent in the structures of the Local Government, they were not beyond control. It showed that low or poor revenue administration within the division could be improved by implementing various policies, such as motivate the tax authorities, check on political interference and finally, findings showed that there were a relationship between Local revenue collection and service delivery is very strong and positive, that is 0.994** significant at the 0.01 level. The researcher concluded that although 75% of the local revenue collected is channeled towards expenditure on delivery of services, 25% of the local revenues collected is misused by some of the administrators involved in planning for the revenues collected and thus strong measures have to be put in place to reduce the misuse as will be seen in the recommendations. The researcher recommended that revenue collection in Garowe Local Government should be privatized by giving out tenders to individuals or companies to collect revenues on behalf of Garowe Local Government Local Government to reduce the increasing rate of tax defaulters; as well enforcement teams should check businesses that have failed to pay taxes and penalize them accordingly.
