Revenue Mobilization Channels and Strategies and Local Government Performance in Ghana: Implications for Fiscal Sustainability of the North Tongu District Assembly

Abstract

This study empirically investigates the influence of revenue mobilization channels and strategies (RMCS) on local government’s performance (LGP), focusing on the North Tongu District Assembly (NTDA), a para-urban Ghanaian community. This study is motivated by the need to enhance fiscal sustainability and improve LGP through effective RMCS. Using a mixed-methods approach and sequential explanatory design, the study examines the effectiveness of these strategies (ERMCS) and the challenges (CRM) associated with revenue collection. Primary data were collected through self-administered questionnaires and face-to-face interviews, with a 90% response rate from 270 respondents. Findings reveal that RMCS and ERMCS significantly and positively impact LGP, while CRM and ineffective strategies (ERM) significantly and negatively affect LGP. Recommendations include capacity building, technological integration, public awareness campaigns, policy reforms, stakeholder engagement and best practices adoption. This study contributes to the literature by offering detailed, context-specific insights into revenue mobilization and LGP. It also introduces new constructs/methodologies that enrich the resource mobilization theory (RMT). Its novel focus on local government dynamics and stakeholder engagement offers valuable contributions to academics and policy makers. The study’s framework, while specific to Ghana, can be replicated in other emerging economies, thus contributing methodologically/conceptually/theoretically to the broader discourse on revenue mobilization and fiscal policy.