Contribution of revenue enhancement plans to fiscal performance: A study of Local Government Authorities in Tanzania

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dc.contributor.authorHyera, Dennis Werner
dc.contributor.authorKadigi, Michael
dc.contributor.authorNdyetabula, Daniel Wilson
dc.date.accessioned2025-07-11T18:19:31Z
dc.date.available2025-07-11T18:19:31Z
dc.date.issued2025-05-01
dc.descriptionJournal article
dc.description.abstractThis study investigates the impact of Revenue Enhancement Plans (REPs) on fiscal performance— primarily revenue collection—within Tanzanian Local Government Authorities (LGAs), focusing on three representative councils: Mwanza City Council, Manyara Urban Council, and Mbeya City Council. Employing a mixed-methods approach, the study integrates quantitative and qualitative data collected from 400 respondents using a multistage sampling technique. Quantitative data were analyzed using a Multivariate Ordered Probit model, which enabled the assessment of four key revenue performance dimensions: effectiveness, increment, reliability, and efficiency. Findings indicate that reducing revenue leakage and improving revenue forecasting accuracy significantly enhance revenue performance. Revenue leakage exhibited a strong negative association with effectiveness (coefficient: -1.221, p<0.01) and increment (-1.59, p<0.01), while accurate forecasting had a positive impact on effectiveness (1.390, p<0.01) and increment (0.516, p<0.01). High implementation costs were negatively associated with revenue growth (-1.634, p<0.05). In contrast, compliance positively influenced reliability (1.533, p<0.01) and efficiency (1.029, p<0.01), reinforcing the importance of regulatory adherence. These findings reflect persistent fiscal decentralization challenges in LGAs, such as weak systems, limited institutional capacity, and inadequate planning. Policy recommendations include implementing digital revenue management systems to curb leakages, strengthening forecasting capabilities through staff training and data analytics, and promoting compliance through awareness programs and enforcement mechanisms. Addressing these areas can improve fiscal performance, enhance financial sustainability, and strengthen service delivery at the local level.
dc.identifier.urihttps://doi.org/10.20525/ijrbs.v14i3.4180
dc.identifier.urihttps://www.suaire.sua.ac.tz/handle/123456789/6824
dc.language.isoen
dc.publisherInternational Journal Of Research In Business And Social Science
dc.subjectFiscal Decentralization
dc.subjectLocal Government Authorities
dc.subjectMultivariate Ordered Probit
dc.subjectPolicy Implications
dc.subjectRevenue Enhancement Plans
dc.titleContribution of revenue enhancement plans to fiscal performance: A study of Local Government Authorities in Tanzania
dc.typeArticle

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