Financial management problems in Local Government in Tanzania: a case study of Same District Council.

The objective of this study was to find out the factors which influence revenue collection at SDC, a local authority and a service organ for local government in Tanzania. Specifically the study sought to find out if Same District Council hereby referred to as SDC practice proper financial management. The main problem was that despite all reform strategies and efforts made by the government, yet revenue collection has long remained poor, unable to meet the targeted estimates and unable to cover for proper provision of basic services to the people. First, the study found out whether tax base and tax setting system have influence on revenue collection. It was found that the "tax base for SDC is very low such that little revenue is collected from the available sources. Also it has been found that tax setting system in SDC does not allow for easy collection of revenues. Secondly, the study sought to investigate whether record keeping has any effect in revenue collection, it was found that SDC has poor financial records keeping procedures such that it hinders revenue collection. Again it has been empirically found that SDC collection procedures and regulations are cumbersome and therefore hinders revenue collections. Human resources capacity (quality and quantity) in SDC has been investigated and it has been found that, the Council lacks knowledgeable, skilled and experienced staff to carry out different activities properly. This has also been found to have effects in revenue collection since the unqualified staff will fail to plan, monitor, and control Council activities.