Public financial management and service delivery at the local government level: A case of Ejura Sekyedumase Municipal Assembly in the Ashanti Region of Ghana

Abstract

Public financial management concerns the efficiency and effectiveness of the use of public resources based on approved budgets. The purpose of this study was to assess the influence of public financial management and service delivery at the local government level using Ejura Sekyedumase Municipal Assembly in the Ashanti region of Ghana as a case. The specific objectives were to establish the relationship between policy based budgeting and service delivery; determine the extent to which budget credibility support service delivery; and the influence of revenue generation and allocation on service delivery. A descriptive study design and census method was used. Data was collected not only from the budget and financial reports of the Assembly but also by administering questionnaires to 11 senior staff and their assistants and 62 assembly members in the Municipality. The data was analysed using descriptive statistics, correlation, paired sample t-test and regression. The study found that there was a strong relationship between policy based budgeting and service delivery at the Assembly. The credibility of the Assembly’s budget in terms of fiscal discipline was strong but weak when actual budgetary releases were matched to the voted budgets. The Assembly was not able to meet its budgeted revenue. The study also realised that positive direct relationships exist between revenue allocation and service delivery. The study therefore recommends that the Assembly strengthens its internal control mechanisms and look inwardly to improve its internally generated fund collection to support service delivery at the local level.