Influence of Public Financial Management Practices on Service Delivery in Ghana’s District Assemblies

Abstract

This research analyzed how six components of public financial management (PFM) -budgeting, revenue mobilisation, expenditure and payments, accounting and financial reporting, auditing and public financial management regulatory framework, as practiced in Ghana’s district assemblies (DAs) influence service delivery. The research adopted mixed methods research design where qualitative and quantitative data were gathered using questionnaires, interviews, focus group discussions and document analysis. Thirty four out of 170 districts which existed by 2008 were sampled. The study obtained data from 612 DA officials, 1020 citizens, 28 key informants and 18 participants in focus group discussions. Quantitative data were analysed using descriptive statistics, correlation and multiple regression while qualitative data were analysed using thematic summary analysis. The study revealed poor rating of service delivery by citizens while district assembly officials rated service delivery as satisfactory. The study established that budgeting and expenditure management practices had positive significant influence on service delivery in the district assemblies. The other four practices -revenue mobilisation, financial reporting, auditing and PFM regulatory practices, did not have significant influence on service delivery. The DAs need to continuously appraise and improve appropriate technologies/automation for efficiency in their systems and processes. The national government should finetune funds transfer process to the DAs and ensure strict enforcement of sanctions on officers culpable of financial malpractices. Civil society stakeholders are encouraged to promote PFM and service delivery audit models in the districts.