|
Original research
REVENUE COLLECTION EFFICIENCY AND LOCAL FINANCIAL PERFORMANCE: EVIDENCE FROM MCHINJI DISTRICT COUNCIL, MALAWIPages 183-192
Abstract
This paper evaluates revenue growth based on the efficiency of operations. The study evaluated the performance of the local revenue management system at Mchinji District Council. It explores whether or not this system is an effective management tool and how it affects financial performance. Despite its location on the border along the strategic route, the council experiences an ongoing and unrealized fiscal gap. The gap relates to high external dependency and low internal revenue generation. For this reason, there is a call for resilience given the heavy dependence on central transfers and the stagnation in internal revenue. This research follows the Public Financial Management theory paradigm. It also uses an explanatory sequential mixed-method case study approach, using linear regression analysis and thematic analysis through SPSS and NVivo, respectively. Results show a strong relationship between operational efficiency and an increase in revenue collection. This was seen via a correlation (R2) of 80%. Qualitative results highlighted a dependency trap and lack of coverage of local tax bases. It also uncovers the operational efficiency mediating factor. The paper surprisingly saw systems like IFMS in place, yet 70% of processes were heavily dependent on manual records, leading to high revenue leakages. Logistical paralysis as well as an accountability vacuum in end-user processes were identified as inhibitors. The author argues the local authority, Mchinji, is soon to become fragile to expansion. The researcher hence strongly recommends cultural and civil service changes, along with the decommissioning of faulty ICT equipment.
Keywords:
Financial Performance, Operational Efficiency, Revenue Collection Systems, Decentralisation .
|
Mac Anthony Chitete, 
PDF 