Towards Enhancing Service Delivery in Uganda’s Local Government Units: Is Fiscal Decentralization Still a Feasible Strategy?

Abstract

The Ugandan government has for years depended on decentralization as a strategy for ensuring efficient delivery of services to its citizens. However, in the wake of obstacles like corruption, nepotism among others that have clouded fiscal decentralization, the need to re-examine its feasibility in explaining service delivery in Uganda’s local governments has become apparent. This study thus examines the extent to which fiscal decentralization explains improvements in service delivery in Uganda’s local government units. A quantitative survey research design was used in this study. Data were collected using a pretested questionnaire and analyzed using quantitative methods. Sampling was purposively done in three districts of Uganda and the respondents included Local Council members elected by local residents and the technical staff of the participating local governments. Correlation results revealed a positive and significant relationship between fiscal decentralization and service delivery (r=.262**, p<.01) while regression results indicated that Fiscal Decentralization can predict Service delivery in local governments (Beta =.452, Sig.=.000). This study therefore recommended that despite the current inefficiencies in fiscal decentralization, it still stands out as a feasible strategy through which the quality of services provided by local governments can be enhanced. As such, the implementation of fiscal decentralization going forward, needs to be augmented with requisite policies to help in alleviating challenges like corruption, nepotism hence improving accountability and value for money on all government contracts sourced at local government levels. This will help improve on the quality of services provided by local governments.