Under Financing in Local Government Authorities of Tanzania: Causes and Effects: A Case of Bahi District Council

§ Institute of Rural Development Planning

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Under Financing in Local Government Authorities of Tanzania:  Causes and Effects: A Case of Bahi District Council

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Abstract

This study aimed at examining the prevalence of under financing in Local Government Authorities of Tanzania, taking Bahi District Council as a case study. Specifically, the study intended to examine the causes, extent of under financing and effects associated with under financing in LGAs. The study adopted cross sectional design. The case study was also used to get an in-depth data on under financing. Questionnaires were used during survey of 115 heads of households. The documentary review and Focus group discussion were used to collect secondary data and primary data related to under financing respectively. The analysis of data was done using SPSS. The findings of this study revealed that, first, under financing in LGA was triggered by fraud, delay in reporting and heavily depending on donors; second, under financing resulted into a number of negative effects such as inability to provide optimal social and economic services. The study concludes that LGAs are not free from under financing. This study therefore recommends that the council and other actors should diversify sources of revenue to be able to absorb the shocks of under financing and reduce donor dependency

References

12 Cites in Article
  1. Bahi District Council (2009). Implementation Report.
  2. David Dawe (1996). A new look at the effects of export instability on investment and growth.
  3. E. Detragiache,Gupta,T. Tressel (2005). Finance in Lower-Income Countries: An Empirical Exploration, International Monetary Fund.
  4. A. Fosu (2001). Economic Fluctuations and Growth in Sub-Saharan Africa: The Importance of Import Instability.
  5. Government of Tanzania, PMO-RALG (2007). Annual Assessment of Minimum Conditions and Performance Measures for Local Councils under the LGCDG System for FY 2007/08.
  6. M. Knoll (2006). Budget Support: A Reformed Approach or Old Wine in New Skins, United Nations, No.
  7. Robert Lensink,Oliver Morrissey (2000). Aid instability as a measure of uncertainty and the positive impact of aid on growth.
  8. OECD (2005). Harmonizing Donor Practices for Effective Aid Delivery, Volume 2: Budget Support, Sector-wide Approaches and Capacity Development in Public Financial Management.
  9. Theuunited Tanzania(URT) (2002). National Agricultural and Livestock Extension Rehabilitation Project under ADF Funding, February 2002.
  10. UNEP (2006). Sustainable Financing for Environmental Projects in Africa: Some Ideas for Consideration African Ministerial Conference on the Environment.
  11. URT (2004). Tanzania Assistance Strategy Annual mplementation Report FY 2002/03, Dar es Salaam.
  12. URT (2009). Ministry of Finance and Economic Affairs Report, Dares Salaam, Tanzania.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Pius Chaya, Dr. Ahmed Ame, Pius John. . "Under Financing in Local Government Authorities of Tanzania: Causes and Effects: A Case of Bahi District Council". Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 13 (GJHSS Volume 13 Issue 5 (E1)).

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

Keywords
Classification
GJHSS-E Classification FOR Code: 140210
Version of record

v1.2

Issue date
February 8, 2013

Language
English
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Under Financing in Local Government Authorities of Tanzania: Causes and Effects: A Case of Bahi District Council

Pius Chaya
Pius Chaya <p>Institute of Rural Development Planning</p>
Dr. Ame
Dr. Ame
Pius John
Pius John