An Assessment of the Revenue Collection Performance of Salaried and Commissioned Revenue Collectors in Ga East and La Nkwantanang-Madina Municipal Assemblies in Ghana

Abstract

Local government revenue generation plays an important role in promoting and sustaining economic growth, providing infrastructure development and improving the social welfare of citizens. However, the failure to fully collect local revenue has become one major administrative problem faced by Metropolitan, Municipal and District Assemblies (MMDAs) in Ghana. Low motivation and inadequate capacity of Revenue Collectors have been identified as a challenge in most MMDAs and this contributes to an ineffective and inefficient generation of local revenue. Studies on low revenue collection in Ghana mostly overlook factors affecting the revenue collection performance of personnel engaged in the collection of local revenue. This thesis adopted a quantitative approach by using regression analysis to examine factors that affect the revenue collection performance of Salaried and Commissioned Revenue Collectors in the Ga East and La Nkwatanang-Madina Municipal Assemblies. In addition the study determined the difference between the revenue collection performance of Salaried and Commissioned Revenue Collectors in these Assemblies. Results from the study indicate that earnings and experience positively affect revenue collection performance. Revenue Collectors in La Nkwantanang Madina Municipal Assembly on average collect more revenue compared to Revenue Collectors in Ga East Municipal Assembly. The thesis also finds that Commissioned Revenue Collectors on average collect more revenue compared to Salaried Revenue Collectors in both Assemblies. The study recommends an incentivized-based salary structure for Revenue Collectors. In addition, MMDAs should ensure that they retain Revenue Collectors with years of experience in revenue collection. For effective collection of revenue, it is also recommended that MMDAs engage the services of more Commissioned Revenue Collectors as they may help improve future revenue generation.