Internal Revenue Mobilization under Fiscal Decentralization: Balancing Efficiency, Accountability and Development Outcomes in Ghana's Local Governments

Aims: This study examines internal revenue mobilisation within Ghana's fiscal decentralisation framework, with a specific focus on how Efficient Revenue Mobilisation Strategies (ERMS) and Other Revenue Efficient Options (OREO) influence development outcomes in local government. Using the Kpando Municipal Assembly as a case study, the study responds to persistent underperformance of internally generated funds (IGFs) and the weak linkage between local revenue mobilisation and development outcomes in decentralised local governments. Study Design: A descriptive, quantitative cross-sectional research design was adopted. Place and Duration of Study: The study was conducted at the Kpando Municipal Assembly in the Volta Region of Ghana from January 2023 to December 2023. Methodology: Primary data were collected using structured questionnaires administered to 135 municipal staff involved in revenue mobilisation, financial administration, and budgeting. Data were analysed using descriptive statistics and multiple linear regression to assess the effects of Efficient Revenue Mobilisation Strategies (ERMS) and Other Revenue Efficient Options (OREO) on development outcomes. Results: The findings reveal that both ERMS and OREO have positive and statistically significant effects on development outcomes. ERMS demonstrated a stronger influence, highlighting the importance of institutional capacity, effective tax administration, and accountability mechanisms under fiscal decentralisation. The regression model explained 34.7% of the variance in development outcomes, indicating a meaningful relationship between local revenue strategies and municipal development performance. Conclusion: Internal revenue mobilisation plays a critical role in supporting local development under Ghana's fiscal decentralisation system. While the Kpando Municipal Assembly demonstrates effective use of conventional and alternative revenue strategies, the moderate impact on development outcomes indicates the need for improved enforcement, transparency, stronger linkage between revenue mobilisation and service delivery, and support for strong institutional capacity and accountability. Implications: Strengthening efficient revenue mobilisation strategies and expanding alternative revenue options will enhance fiscal autonomy, improve service delivery, and support sustainable local development at the municipal level. The findings offer policy-relevant insights for improving fiscal autonomy, service delivery, and sustainable local development in Ghana and other developing countries implementing decentralised governance reforms. Recommendations: The study recommends enhanced public education on the roles and responsibilities of MMDAs, regular training and orientation for revenue collectors and government officials, and the enforcement of transparent and accountable revenue collection practices to reduce corruption and improve revenue performance.