Mr. Komla Deku , Managing Consultant, Dekhab Associates, has said total internally-generated funds from 2010 to 2012 for all Metropolitan, Municipal, and District Assemblies (MMDAs) respectively, stood at Gh?89,439,509.33; Gh?109,528,032.25 and Gh?126,378,716.61.
He said, out of this, the totals for the best three MMDAs, that is, Accra, Kumasi and Tema, consistently topping the league table for IGF mobilization performance, were Gh?30,759,241.00; Gh?41,330,044.00; Gh?43,311,249.00 for the three years respectively.
Mr Deku who made these disclosures who he presented a paper on the topic: ‘Maximization of Internally-Generated Funds Through Automation,’ at the on-going New Year School in Accra, said the monies constituted an average of 35% of the total MMDAs IGF mobilization for the periods under review.
He disclosed that 74% and 71% of the total IGF were sourced from Rates, Fees and Licenses for 2011 and 2012 respectively, pointing out, therefore, that any strategy for improving IGF must start from these three sources.
He said the three Metros, namely, Accra, Kumasi and Tema, must have been fully automated by now.
Mr Deku indicated that between 2011 and 2013, the Sekondi-Takoradi Metropolitan Assembly, produced on average, 80% of its IGF from Property Rate, Bill Boards/Advertisements, and Business Operating Permit.
He said some development partners have supported studies for improving on IGF operations, such as the out-sourcing of local revenue collections in the Western Region sponsored by United States Agency for International Development (USAID), under Local Government Decentralization Programme (LOGODEP); and the German Agency for International Co-operation (GIZ/SfDR), also supporting selected districts in IGF outsourcing.
He said In order to address some of the salient problems bedeviling IGF mobilization and collection, LOGODEP in 2010, started street naming and house numbering in five districts in the Western Region, namely, Shama, Prestea-Huni Valley, Bibiani-Anhwiaso-Bekwai, Sefwi Wiawso and Tarkwa, which has been a forerunner to the Presidential directive in April, 2013 indicating that all MMDAs must start and complete the Street Naming and Property Addressing within 18 months.
Mr Deku also noted that with the Land Use Planning and Management Information System (LUPMIS), having been piloted by the Ministry of the Environment, Science and Technology (MEST), LOGODEP collaborated with MEST to develop a credible taxpayer database based on Geographic Information System (GIS).
He said in the handbook, ? Tapping the Untapped Potential, ? the German Agency for International Co-operation (GIZ/SfDR), had recorded success stories in eight African, including Ghana, where revenue increased by as much as 400% through capacity-building intervention in seven districts in the Brong Ahafo Region(GIZ, 2012).
He said it piloted the District Database System (DDS) in seven districts in the Brong Ahafo Region, and this saw IGF increase by as much as 300% in the Tain district, due mostly to development of database for property rate and building capacity of the DPCU to manage the District Database system.
He explained that this success story shows that for IGF to improve, there is the need for committed district, political and administrative leadership, teamwork among key actors, building the capacity of the core staff (DPCU) for reasons of ownership and sustainability, the selection of personnel for capacity development – only when done strategically yields the desired results, sensitization and active participation of communities in development planning and implementation, Proper utilization of IGF – provide better local services to encourage taxpayers to live up to their obligations.
The Ho Municipal Assembly spent about Gh?60,000 on valuation of properties in Ho township, and recorded Gh?343,840 inflow from Property rate in 2012 alone.
The causes of low revenue generation can be summed up in the equation: Weak Tax Administration and Policy, plus Lack Of Political will be equall to Low Revenue Collection, thus the need for database development and management, staff capacity upgrading and leveraging; addressing legislative issues relating to dual allegiance of some staff and the dual role of the finance officer; and focusing efforts on sustainable revenue generation.
Mr Deku said recommendations in the Inter-governmental Fiscal Framework Action Plan on IGF should be implemented as soon as practicable, because. technology must be applied to IGF generation and collection by improving on tax administration (tax coverage, property valuation, collection and enforcement) central government policy and development of strong political will to give districts financial autonomy but within limits that guarantee inter-district fairness in business transaction.
Mr Joseph Antwi, Head of the Fiscal Decentralization Unit of the Ministry of Finance recalled that, in order to address some of the salient problems bedeviling IGF mobilization and collection, in 2010 LOGODEP began the street-naming and house-numbering in those five districts in the Western Region, which has been a forerunner to the Presidential directive in April, 2013 for all MMDAs to start and complete the Street-Naming and Property-Addressing within 18 months. .
Public services delivery is a core function of governments across the globe. To effectively perform this function. Governments have adopted various mechanisms, including the transfer of some of these functions together with financial resources, which are either, raised locally, transferred from the center, or borrowed to deliver these services