Toward Fiscal Decentralization: Assessing the Performance of Internally Generated Revenue Collection for Local Development in Ghana
Charles Nicholas 
, Charles Dwumfour Osei & David Kwao-Sarbah
Issue: Vol.6 No.6 Article 15 pp. 853 – 864
DOI: https://doi.org/10.38159/ehass.20256615 | Published online 13th May, 2025
© 2025 The Author(s). This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).
The success of decentralization efforts in developing countries, such as Ghana, is closely tied to the capacity for robust infrastructure delivery at the local level, where local governments are mandated to drive development but often operate on shoestring budgets. This study critically examines the performance of Internally Generated Funds (IGF) collection in the Ahafo Ano-South West District in Ghana, with a specific focus on revenue trends from 2016 to 2022. Using time series data, the study applies the Corrected Revenue Collection Index (CRCI) to assess how well various revenue streams performed. The findings reveal a striking pattern where property rates emerged as the most consistent and high-performing source of IGF, while revenues from land royalties and administrative fees lagged significantly. Rental income from lands and buildings, and licenses, showed moderate but promising results. These disparities highlight the untapped potential within local revenue systems and point to key areas for reform and strategic investment. By offering new empirical insights, this study contributes meaningfully to the broader discourse on local government financing and sustainable development. It underscores the urgent need for improved revenue mobilization strategies and greater fiscal accountability to empower district assemblies in Ghana and similar contexts to deliver on their developmental mandates. Strengthening IGF collection is not just a financial necessity but a pathway to stronger and more self-reliant local governance.
Keywords: Revenue mobilization, Internally generated fund, District Assembly, Local Government, Decentralization, Ghana.
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Charles Nicholas is a dedicated development professional with a Master’s degree in Monitoring and Evaluation from Christian Service University in Ghana. He currently serves as the Beneficiary Monetary Assistant at the Youth Employment Agency within the Ahafo Ano-South West District, where he plays a vital role in supporting youth empowerment and financial accountability. His academic background and commitment to impact-driven work position him as a valuable contributor to local governance and community development initiatives.
Charles Dwumfour Osei holds a PhD in Management Science and Engineering. He is a lecturer in the Department of Planning and Development at Christian Service University in Ghana.
David Kwao-Sarbah is currently pursuing a PhD in Decentralization and Local Governance at the University of the Western Cape in South Africa. He serves as the Assistant Director of the Quality Assurance Unit at Christian Service University, Ghana. In this capacity, he plays a key role in ensuring academic standards, institutional effectiveness, and continuous improvement across the university’s programs.
Nicholas, Charles, Charles Dwumfour Osei, and David Kwao-Sarbah. “Toward Fiscal Decentralization: Assessing the Performance of Internally Generated Revenue Collection for Local Development in Ghana,” E-Journal of Humanities, Arts and Social Sciences 6, no.6 (2025): 853 – 864. https://doi.org/10.38159/ehass.20256615
© 2025 The Author(s). Published and Maintained by Noyam Journals. This is an open access article under the CCBY license (http://creativecommons.org/licenses/by/4.0/).
