MP for Kpando, Sebastian Deh has raised concerns about the weak revenue mobilization of district assemblies in Ghana’s Northern Region. Speaking at the Public Accounts Committee sitting in Tamale, Deh highlighted that revenue collected by salaried collectors was significantly less than the total salaries paid, resulting in a large variance.
According to Deh, the situation is “not cost-effective” and indicates that assemblies are relying heavily on central government funds due to low internally generated funds (IGF).
He suggested re-evaluating collector incentives, deploying task forces, and optimizing staffing to improve revenue-cost alignment.
Deh believes his observations provide opportunities for professional management consultants to step in and help strengthen public sector financial management.
“The assemblies need your help to strengthen public sector financial management,” he said.
Below are extracts from his observation:
Per the audited reports placed before us, revenue performance from three district assemblies who appeared before us, summarizes as follows:
Revenue vs. Cost: The total revenue collected by salaried collectors (₵124,145) was significantly less than the total salaries paid (₵309,386), resulting in a large variance of ₵185,241 (59.87% average).
This indicates that the cost of employing collectors exceeds the revenue they generate. Yes, “Good money chasing bad money” Yes, the situation can be described as using substantial public funds (salaries) to chase insufficient revenue returns, making the revenue mobilization *not cost-effective*.
It is clear that, assemblies are relying heavily on central government funds to cover service costs because internally generated funds (IGF) are low relative to expenditure.
Based on this, management of these assemblies have options; re-evaluate collector incentives, deploy task forces, or optimize staffing and put in appropriate measures to incentivize revenue mobilization and improve revenue-cost alignment.
I believe my observations also provide some leads to professional management consultants to step in with solutions. The assemblies need your help to strengthen public sector financial management.
