Improving revenue mobilisation at MMDAs govt’s priority -Alima Mahama

Hajia Mahama

Hajia Mahama

Hajia Alima Mahama, Minister of Local Government and Rural Development, has stated that improved local revenue generation at the Metropolitan, Municipal and District Assemblies (MMDAs) is one of the major priorities of government.

She explained that the administration and management of internally generated funds (IGF), was a shared responsibility between the Ministries of Finance and Local Government and Rural Development, due to their roles of fiscal policy and local governance respectively.
Hajia Mahama said this in a speech read on her behalf at a workshop organised by the Ministry in collaboration with the International Growth Centre (IGC) on the theme: ‘Improving local government revenue mobilisation.’

“Over the years, various interventions have been undertaken to improve revenue mobilisation at the MMDAs level, that notwithstanding, there are still many challenges that urgently needed to be addressed.

“Chapter 20 of the 1992 Constitution (Article 245) states that Parliament, shall by law, prescribe the functions of the district assemblies which shall include levying and collection of taxes, rates, duties and fees.

“Schedule eight and 11 of the Local Governance Act, Act 936 of 2016, expanded on this and empowered assemblies to collect revenue from a range of sources to complement central government transfers and funding from development partners,” Hajia Mahama stressed.

Dr Ato Arthur, Head, Office of the Local Government Service Secretariat, said the collection of data was an important factor to improving revenue mobilisation at the local level.

He urged MMDCEs to set exemplary leadership in the generation and management of revenue of their various assemblies by showing interest in the use of data collection and technology.

Dr Kwaku Sowah, Country Director of IGC, noted that the IGC directed a global network of world-class researchers and in-country teams in Africa and South Asia and worked closely with partner governments to generate high quality research and policy advice on key growth challenges.

“The research indicated that there were clear challenges to raising more internally generated funds of MMDAs, starting with lack of official property addresses, which made it difficult for MMDA staff to deliver bills and collect property rates.

“According to estimates, about 24 per cent of property in the average MMDA had an official address, which indicated that one unambiguous constraint on raising IGF was the lack of technology use,” Dr Sowah stressed. -GNA

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