FACTORS AFFECTING REVENUE COLLECTION IN LOCAL GOVERNMENT AUTHORITIES IN TANZANIA

Abstract

This study explores the factors impacting revenue collection within Local Government Authorities (LGAs) in Tanzania, focusing on Ileje District Council. Despite numerous initiatives and efforts to enhance revenue collection, several persistent challenges continue to impede effective financial mobilization. The general objective of the research was to examine the factors affecting revenue collection in Ileje District Council. The specific objectives included determining the effect of internal audit recommendations, effective monitoring, and the utilization of the Tausi system on revenue collection. Adopting a quantitative research approach with a positivist philosophy, the study employed a cross sectional design. The target population comprised individuals involved in revenue collection in Ileje District Council, with a sample size of 122 determined using purposive sampling. Data was collected using questionnaires and analyzed through descriptive statistics and multiple linear regression analysis. The results of the multiple linear regression analysis indicated that approximately 59.9% of the variance in revenue collection could be explained by the combined effects of the independent variables. Specifically, the findings revealed that internal audit recommendations, effective monitoring, and the utilization of the Tausi system significantly influenced revenue collection. The coefficient regression results showed that internal audit recommendations, effective monitoring, and the Tausi system had positive and statistically significant impacts on revenue collection. The study concluded that to enhance revenue collection and internal auditing within local government contexts, it is crucial to implement comprehensive training programs. These findings provide valuable insights into the critical factors affecting revenue collection in local government authorities and suggest practical recommendations for improving financial mobilization. By addressing these factors, LGAs in Tanzania can potentially enhance their revenue collection efficiency, leading to better financial sustainability and improved service delivery to the communities they serve. The study emphasizes the importance of integrating robust internal audit mechanisms, effective monitoring practices, and advanced technological systems like Tausi to bolster revenue collection processes. This comprehensive approach could serve as a model for other local government authorities facing similar challenges in revenue collection