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Decentralization Of MMDA

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Decentralisation has been pursued with the main objective of bringing governance and development decision-making closer to the ordinary citizen at the sub-national level. The devolution of power, authority and resources to sub-national entities is intended to make governance more responsive to the needs of the people. It is also intended to make governments more accountable to the local people (Ahwoi, 2010; Kokor, 2001; Yilmaz, et al, 200). In Ghana the Metropolitan, Municipal and District Assemblies (MMDAs) are partners to the Central Government, and as partners they are mandated to mobilize sufficient local government revenue in order to be able to pursue their developmental agenda. The mobilised local government revenue is used to enable …show more content…

Local government authorities are expected to promote not only political participation in decision-making, but they also have the responsibility of advancing socio-economic development to local residents. In Ghana local residents often look up to MMDAs to promote socio-economic development in their respective localities. This developmental task of the MMDAs requires financial resources. Yilmaz, et al, (2008) pointed out that the ability of local governments to effectively carry out their functions is largely dependent on the degree of fiscal decentralisation. The fiscal decentralization policy in Ghana provides these sources of revenue for MMDAs which includes, the District Assemblies Common Fund (DACF), ceded revenue, internally generated funds the local taxation, loans, permits, among others, and from other sources like the sale of …show more content…

He viewed taxation as the most efficient and effective ways of generating revenue for both the Central Government and the MMDAs in Ghana. Whereas the Central Government is able to generate more revenue through taxation, the MMDAs are not able to generate sufficient revenue through taxation because greater part of the tax revenue goes to the Central Government. Gupta and Tareq (2008) argued that the strategising of domestic revenue base is keyed to creating fiscal space for local developmental needs. The recent MMDAs in Ghana were created in as integrated decentralized authorities combining oversight of de-concentrated line ministries with the revenue powers and functions of devolved democratic local governance (Fosu, 2012)

Ayee (2003) mentioned that the MMDAs in Ghana are in vantage positions to articulate the needs of the masses and to formulate strategies for their realisation since they are the closers governments to the people at the grassroots levels and they are also strategically located to play instrumental roles in the economic development of the country hence they are responsible for the governance of a large mass of the population of Ghana (Patrick,

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