MODULE III: URBAN MODULE III: URBAN FINANCIAL FINANCIAL
MANAGEMENT:REVENUE MANAGEMENT:REVENUE RAISING, BUDGETING AND RAISING, BUDGETING AND
PARTICIPATIONPARTICIPATION
PRESENTED BYPRESENTED BYDR. J.F.T. AWAITEY,DR. J.F.T. AWAITEY,
PRINCIPAL BUDGET ANALYST,PRINCIPAL BUDGET ANALYST,HEAD OF BUDGET AND RATING DEPT.HEAD OF BUDGET AND RATING DEPT.ACCRA METROPOLITAN ASSEMBLY ACCRA METROPOLITAN ASSEMBLY
TEL: 233 20 2112070TEL: 233 20 2112070EMAIL: EMAIL: [email protected]@hotmail.com
WHAT IS FINANCIAL WHAT IS FINANCIAL MANAGEMENT?MANAGEMENT?
Managerial activity concerned with Managerial activity concerned with planning and controlling of planning and controlling of organisation’s financial resources.organisation’s financial resources.
Art of mobilizing financial resources and Art of mobilizing financial resources and making prudent, judicious, optimum making prudent, judicious, optimum and efficient use of such resources.and efficient use of such resources.
““Whole set of activities by which Whole set of activities by which intentions of City Managers and intentions of City Managers and politicians (expressed through various politicians (expressed through various means such as City Strategic Plan) means such as City Strategic Plan) become operational” (The World Bank become operational” (The World Bank Institute).Institute).
WHAT IS FINANCIAL WHAT IS FINANCIAL MANAGEMENT? (cont’d)MANAGEMENT? (cont’d)
It can be said to be muscle and It can be said to be muscle and substance of the whole job of substance of the whole job of management, which is to get things management, which is to get things through the co-ordinated efforts of through the co-ordinated efforts of people, purchased goods and people, purchased goods and services. services.
System that provides funds for the System that provides funds for the organisation, ensures the organisation, ensures the maintenance and control of funds maintenance and control of funds and reports on the use of funds.and reports on the use of funds.
WHAT IS FINANCIAL WHAT IS FINANCIAL MANAGEMENT? (cont’d)MANAGEMENT? (cont’d)
To sum it up, if we canTo sum it up, if we can IdentifyIdentify clearly what financial clearly what financial resourcesresources we we
need;need; PlanPlan and and executeexecute well the well the strategiesstrategies to obtain to obtain
them;them; Sensibly allocateSensibly allocate funds we receive; funds we receive; Control wellControl well their resulting use, and their resulting use, and JustifyJustify everything we have done to those everything we have done to those
entitled to call for an accounting of our entitled to call for an accounting of our stewardship stewardship
Then we have been engaging in sound Then we have been engaging in sound financial management.financial management.
FINANCIAL MANAGEMENT IN A FINANCIAL MANAGEMENT IN A DECENTRALISED SYSTEM OF DECENTRALISED SYSTEM OF
GOVERNANCEGOVERNANCE Urban financial management Urban financial management
hinges basically on level of hinges basically on level of decentralization of government decentralization of government machinery of a country.machinery of a country.
Financial Management is Financial Management is attributable to the level of attributable to the level of financial autonomy granted to financial autonomy granted to local governments in the countrylocal governments in the country
DECENTRALISATIONDECENTRALISATION
Sharing of power and responsibility Sharing of power and responsibility between levels of government or between levels of government or institutions.institutions.
Giving local governments financial, Giving local governments financial, legal, institutional and managerial legal, institutional and managerial resources to fulfill those powers and resources to fulfill those powers and responsibilities.responsibilities.
Local governments be made Local governments be made accountable to their constituents and accountable to their constituents and Central Government.Central Government.
TYPES OF TYPES OF DECENTRALISATIONDECENTRALISATION
Political;Political; Administrative;Administrative; Fiscal.Fiscal.
FISCAL FISCAL DECENTRALISATIONDECENTRALISATION
Devolving revenue sources and Devolving revenue sources and expenditure functions to lower expenditure functions to lower levels of government.levels of government.
Expected to boost public sector Expected to boost public sector efficiency, accountability and efficiency, accountability and transparency in service delivery transparency in service delivery and policy-making.and policy-making.
LEGAL FRAMEWORK FOR LEGAL FRAMEWORK FOR FISCAL DECENTRALISATIONFISCAL DECENTRALISATION
1992 Constitution of the Republic 1992 Constitution of the Republic of Ghana – Article 245(b) of Ghana – Article 245(b) transfers power to DAs for transfers power to DAs for “levying and collection of taxes, “levying and collection of taxes, rates, duties and fees”.rates, duties and fees”.
Local Government Act of 1993 Local Government Act of 1993 (Act 462) – Section 94 confers on (Act 462) – Section 94 confers on DAs status of Rating Authority.DAs status of Rating Authority.
LEGAL FRAMEWORK FOR LEGAL FRAMEWORK FOR FISCAL DECENTRALISATIONFISCAL DECENTRALISATION
OTHER STATUTESOTHER STATUTES::• Financial Administration Decree of 1979 Financial Administration Decree of 1979
(SMCD 221).(SMCD 221).• Financial Administration Regulations of Financial Administration Regulations of
1979, (L.I.1234).1979, (L.I.1234).• Financial Memoranda for Local and Urban Financial Memoranda for Local and Urban
Councils under the Local Government Act Councils under the Local Government Act of 1961 (Act 54).of 1961 (Act 54).
• District Assemblies Common Fund Act of District Assemblies Common Fund Act of 1993 (Act 455)1993 (Act 455)
• Local Government (District Tender Boards) Local Government (District Tender Boards) (Establishment) Regulations of 1995 (L.I. (Establishment) Regulations of 1995 (L.I. 1606).1606).
• Bye – Laws and resolutions of DAs.Bye – Laws and resolutions of DAs.
MAIN SOURCES OF MAIN SOURCES OF REVENUEREVENUE
Four (4) main groups, namely:Four (4) main groups, namely:• Internally – generated (traditional) Internally – generated (traditional)
sources of revenuesources of revenue• Central Government transfersCentral Government transfers• Private Sector funding of servicesPrivate Sector funding of services• LoansLoans
INTERNALLY – GENERATED INTERNALLY – GENERATED REVENUEREVENUE
RatesRates FeesFees Licences (Business Operating Licences (Business Operating
Permits)Permits) RentsRents Trading Services, Investments and Trading Services, Investments and
Miscellaneous SourcesMiscellaneous Sources LandsLands
CENTRAL GOVERNMENT CENTRAL GOVERNMENT TRANSFERSTRANSFERS
Ceded Revenue;Ceded Revenue; District Assemblies Common District Assemblies Common
Fund (DACF);Fund (DACF); Payment of 100% of salaries of Payment of 100% of salaries of
workers of RCCs, DAs and Sub-workers of RCCs, DAs and Sub-District Councils;District Councils;
Road Fund allocations;Road Fund allocations; Grants in lieu of rates;Grants in lieu of rates;
CENTRAL GOVERNMENT CENTRAL GOVERNMENT TRANSFERS (cont’d)TRANSFERS (cont’d)
Shares of royalties on land, Shares of royalties on land, timber, minerals;timber, minerals;
Urban development projects Urban development projects financed with credit/loan funds financed with credit/loan funds (external inflows); (external inflows);
Allocations for district projects Allocations for district projects implemented by sector implemented by sector ministries/departments.ministries/departments.
PRIVATE SECTOR FUNDING OF PRIVATE SECTOR FUNDING OF SERVICESSERVICES
Revenue from this source is Revenue from this source is manifested in 2 waysmanifested in 2 ways::
Provision of infrastructural Provision of infrastructural services,services,
Provision of management Provision of management services,services,
LOANSLOANS
Empowerment to borrow Empowerment to borrow under Act 462 (Section 88).under Act 462 (Section 88).
COMMON PROBLEMS IN COMMON PROBLEMS IN IDENTIFYING NEW RESOURCESIDENTIFYING NEW RESOURCES
Local FactorsLocal Factors:: Legal;Legal; Institutional;Institutional; Low capacityLow capacity International factorsInternational factors:: Borrowing on international financial Borrowing on international financial
markets is new phenomenon to Sub – markets is new phenomenon to Sub – Saharan African local governments.Saharan African local governments.
No or low credit ratingsNo or low credit ratings
COMMON PROBLEMS IN IDENTIFYING COMMON PROBLEMS IN IDENTIFYING NEW RESOURCES (cont’d)NEW RESOURCES (cont’d)
Mixed FactorsMixed Factors::
i.i. Low level of both local and Low level of both local and foreign investments.foreign investments.
INTER – GOVERNMENTAL SYSTEM INTER – GOVERNMENTAL SYSTEM OF REVENUE SHARINGOF REVENUE SHARING
Discretionary type;Discretionary type; Mandatory type of revenue Mandatory type of revenue
sharing.sharing.
OWN – RESOURCE OF OWN – RESOURCE OF REVENUESREVENUES
RATESRATES Basic Rate;Basic Rate; Property Rate;Property Rate; Procedures (steps) to be followed in Procedures (steps) to be followed in
computing rate due:computing rate due:a.a. Estimate the total expenditure of the Estimate the total expenditure of the
DA for the fiscal year.DA for the fiscal year.
b.b. Estimate the Non-Property Rate Estimate the Non-Property Rate revenue of the DA for the fiscal year.revenue of the DA for the fiscal year.
OWN – RESOURCE OF OWN – RESOURCE OF REVENUES (cont’d)REVENUES (cont’d)
c.c. Subtract (b) from (a) to obtain Subtract (b) from (a) to obtain expenditure to be met from expenditure to be met from property rate revenue.property rate revenue.
d.d. Divide estimated expenditure to be Divide estimated expenditure to be met from property rates by total met from property rates by total rateable values of all properties in rateable values of all properties in the Valuation Roll (List) to arrive at the Valuation Roll (List) to arrive at a flat (average) or uniform rate a flat (average) or uniform rate impost.impost.
OWN – RESOURCE OF OWN – RESOURCE OF REVENUES (cont’d)REVENUES (cont’d)
e.e. Vary this rate impost according to Vary this rate impost according to rating zones/classifications to obtain rating zones/classifications to obtain differential rate imposts. differential rate imposts.
f.f. The rate impost should be varied in The rate impost should be varied in such a way that the total of rates such a way that the total of rates payable in respect of each class of payable in respect of each class of property may be equal (i.e. if the property may be equal (i.e. if the Assembly has 100% previous Assembly has 100% previous collection performance records) or a collection performance records) or a bit higher than the figure in (c).bit higher than the figure in (c).
OWN – RESOURCE OF OWN – RESOURCE OF REVENUES (cont’d)REVENUES (cont’d)
Rate Impost formula could be Rate Impost formula could be deduced as follows:deduced as follows:
ETE – NPRRETE – NPRRRI (c)--------------------RI (c)--------------------
TRVTRV Where, RI (c) is Flat/Average or Uniform Where, RI (c) is Flat/Average or Uniform
RateRateImpost in Cedis Impost in Cedis
ETE is Estimated Total Expenditure ETE is Estimated Total Expenditure NPRR is Non-Property Rate RevenueNPRR is Non-Property Rate Revenue
TVR is Total Rateable Value.TVR is Total Rateable Value.
OWN – RESOURCE OF OWN – RESOURCE OF REVENUES (cont’d)REVENUES (cont’d)
Exemptions from payment of Exemptions from payment of property rates Section 99 (1) (a-e) of property rates Section 99 (1) (a-e) of Act 462Act 462
a.a. All premises appropriated exclusively All premises appropriated exclusively for the purpose of public worship and for the purpose of public worship and registered with the DA;registered with the DA;
b.b. Cemeteries and burial grounds Cemeteries and burial grounds registered with the DA;registered with the DA;
c.c. Charitable or public educational Charitable or public educational institutions registered with the DA;institutions registered with the DA;
OWN – RESOURCE OF OWN – RESOURCE OF REVENUES (cont’d)REVENUES (cont’d)
d.d. Premises used as public Premises used as public hospitals and clinics; andhospitals and clinics; and
e.e. Premises owned by diplomatic Premises owned by diplomatic missions as may be approved missions as may be approved by the Minister for Foreign by the Minister for Foreign Affairs.Affairs.
OWN – RESOURCE OF OWN – RESOURCE OF REVENUES (cont’d)REVENUES (cont’d)
• Exemptions from payment of Basic Exemptions from payment of Basic RateRate
a.a. persons who are in attendance at persons who are in attendance at educational institutions who do not educational institutions who do not receive any remuneration or income during receive any remuneration or income during that period other than an allowance, loan that period other than an allowance, loan or other grant provided for the purposes of or other grant provided for the purposes of such attendance, and for the purposes of such attendance, and for the purposes of this paragraph “remuneration” does not this paragraph “remuneration” does not include any sum received by a person in include any sum received by a person in respect of temporary employment respect of temporary employment undertaken by him during vacation from an undertaken by him during vacation from an educational institution; andeducational institution; and
b.b. Persons who are more than seventy (70) Persons who are more than seventy (70) years old.years old.
FEESFEES
• Two (2) vital documents regulate Two (2) vital documents regulate the levying of fees and rates:the levying of fees and rates:
Fee-Fixing ResolutionFee-Fixing Resolution Rate Imposition ResolutionRate Imposition Resolution• Guidelines for the charging of Rates, Guidelines for the charging of Rates,
Fees, Licences, etc. issued by Fees, Licences, etc. issued by MLGRD. MLGRD.
FEES (cont’d)FEES (cont’d)
Guidelines for the charging of Rates, Fees, Guidelines for the charging of Rates, Fees, Licences, etc. issued by MLGRD. Licences, etc. issued by MLGRD.
Factors in determining level of fees, Factors in determining level of fees, licences, etc.:licences, etc.:
Cost – recoveryCost – recovery Fairness (Equity)Fairness (Equity) DeterrenceDeterrence CompetitionCompetition Environmental & EconomicEnvironmental & Economic Promotional.Promotional.
FEES (cont’d)FEES (cont’d)
Technical Issues in the Technical Issues in the Implementation of GuidelinesImplementation of Guidelines
Difficulty with cost – recovery method. Difficulty with cost – recovery method. Difficulty in determining baseline levels of Difficulty in determining baseline levels of
fees, licences, charges. fees, licences, charges. Which factor choice should be Which factor choice should be
determinant/ dominant? determinant/ dominant? Late release of Guidelines.Late release of Guidelines. No system of indexation for adjustments in No system of indexation for adjustments in
levels in the absence of Guidelines.levels in the absence of Guidelines.
LICENSES (BUSINESS OPERATING LICENSES (BUSINESS OPERATING PERMITS – B.O.P.)PERMITS – B.O.P.)
Fee-Fixing Resolution and Fee-Fixing Resolution and Guidelines are relevant for Guidelines are relevant for licences (BOP) also.licences (BOP) also.
RENT
Computed based on asset Computed based on asset registers of DAs and registers of DAs and holdings transferred by holdings transferred by other other departments/agenciesdepartments/agencies
TRADING SERVICES, INVESTMENTS TRADING SERVICES, INVESTMENTS AND MISCELLANEOUS SOURCESAND MISCELLANEOUS SOURCES
Revenue generated from own Revenue generated from own trading/ commercial venturestrading/ commercial ventures
Dividends from sharesDividends from shares Overpayment recoveriesOverpayment recoveries Sale of scraps by auctionSale of scraps by auction
LANDSLANDS
Revenue accrues from royalties, Revenue accrues from royalties, concessions, burial fees.concessions, burial fees.
SOME GENERAL PROBLEMS ASSOCIATED SOME GENERAL PROBLEMS ASSOCIATED WITH REVENUE GENERATIONWITH REVENUE GENERATION
Lack of adequate and reliable databases Lack of adequate and reliable databases Attitude of non-usage of available data by Attitude of non-usage of available data by
DAsDAs Negative attitude of DAs in awareness Negative attitude of DAs in awareness
creationcreation Lack of tax consciousness and non-payment Lack of tax consciousness and non-payment
of rates by the governed/publicof rates by the governed/public Inability to enforce bye-laws as a result of Inability to enforce bye-laws as a result of
non-existence of tax courtsnon-existence of tax courts CorruptionCorruption
BORROWING AS A SOURCE OF BORROWING AS A SOURCE OF REVENUEREVENUE
Why should a DA borrow from the Why should a DA borrow from the Capital Market?Capital Market?
To address critical needs – improving To address critical needs – improving education, social services, roads, education, social services, roads, sanitation, etc.sanitation, etc.
The extent of responsibilities The extent of responsibilities transferred to the local government.transferred to the local government.
Advantages of borrowingAdvantages of borrowing Constraints/Conditionalities on Constraints/Conditionalities on
BorrowingBorrowing
EFFICIENCY IN THE USE OF EFFICIENCY IN THE USE OF BUDGET RESOURCESBUDGET RESOURCES
Begins with approval and allocations Begins with approval and allocations of resources (both at DA and national of resources (both at DA and national levels).levels).
Problems with Central Government Problems with Central Government transfers –transfers –
Short-payments, Short-payments, Delays in some transfers Delays in some transfers Selective restrictions/constraints on Selective restrictions/constraints on
use of certain resources.use of certain resources.
EFFICIENCY IN THE USE OF EFFICIENCY IN THE USE OF BUDGET RESOURCES (cont’d)BUDGET RESOURCES (cont’d)
DAs efficient use of budgetary DAs efficient use of budgetary resources depends on the ff:resources depends on the ff:
inflow of resources through trends inflow of resources through trends analysis. analysis.
revenue and expenditure levels need revenue and expenditure levels need to be reviewed regularly. to be reviewed regularly.
use of variance analysis reports. use of variance analysis reports. reduction in the unit cost of services. reduction in the unit cost of services. cost of revenue collection.cost of revenue collection.
CORE FEATURES OF GOOD CORE FEATURES OF GOOD FINANCIAL MANAGEMENTFINANCIAL MANAGEMENT
BudgetingBudgeting Process by which DA compiles Process by which DA compiles
statement of activities and statement of activities and programmes it proposes to execute programmes it proposes to execute during a budget year and formulate during a budget year and formulate financial policy based on the proposed financial policy based on the proposed programmes.programmes.
Budgeting is about making financial Budgeting is about making financial plans and monitoring activities to see plans and monitoring activities to see whether they conform to the plan.whether they conform to the plan.
CORE FEATURES OF GOOD CORE FEATURES OF GOOD FINANCIAL MANAGEMENT (cont’d)FINANCIAL MANAGEMENT (cont’d)
Good budgeting entailsGood budgeting entails::a.a. Availability of adequate and Availability of adequate and
reliable data-base(s);reliable data-base(s);b.b. Monitoring of Expenditure;Monitoring of Expenditure;c.c. Computerization of Accounting Computerization of Accounting
and Budgeting Systems; and Budgeting Systems;
CORE FEATURES OF GOOD CORE FEATURES OF GOOD FINANCIAL MANAGEMENT (cont’d)FINANCIAL MANAGEMENT (cont’d)
d.d. Target setting;Target setting;
e.e. Institutional Strengthening;Institutional Strengthening;
f.f. Searching for new sources of Searching for new sources of revenuerevenue
g.g. Reviewing revenue collection Reviewing revenue collection strategies;strategies;
h.h. Effective Budgetary control Effective Budgetary control system.system.
ACCOUNTINGACCOUNTING Financial ControlFinancial Control Financial regulations:Financial regulations:1.1. FAD of 1979 ( SMCD 221)FAD of 1979 ( SMCD 221)2.2. FAR of 1979 (L.I. 1234)FAR of 1979 (L.I. 1234)3.3. Financial Memoranda for Urban and Financial Memoranda for Urban and
Local Councils Of 1961Local Councils Of 19614.4. Guidelines for Utilisation of DACF, Guidelines for Utilisation of DACF,
1994-20011994-20015.5. Treasury CircularsTreasury Circulars
ACCOUNTING (cont’d)ACCOUNTING (cont’d) Some applications of financial control Some applications of financial control
measuresmeasures
a.a. Accounting for revenue collection Accounting for revenue collection within 48 hours.within 48 hours.
b.b. Opening and use of appropriate Opening and use of appropriate books of account.books of account.
c.c. Preparation and analysis of financial Preparation and analysis of financial statements as a means of accounting statements as a means of accounting for stewardship (financial for stewardship (financial accountability).accountability).
ACCOUNTING (cont’d)ACCOUNTING (cont’d) Factors that determine and Factors that determine and
influence the need and objectives influence the need and objectives for local government accounting:for local government accounting:
a.a. Compliance; Compliance;
b.b. planning and authorization planning and authorization information;information;
c.c. Viability;Viability;
d.d. Public relations information;Public relations information;
e.e. Sources of facts and figures.Sources of facts and figures.
ACCOUNTING (cont’d)ACCOUNTING (cont’d) Users of financial reportsUsers of financial reports::a.a. MPs/Assembly Members;MPs/Assembly Members;b.b. Public as Voters and Rate Payers;Public as Voters and Rate Payers;c.c. Customers or Clients;Customers or Clients;d.d. Management;Management;e.e. Customers and Suppliers;Customers and Suppliers;f.f. Employees;Employees;g.g. Donors/Sponsors/Investors/Financial Donors/Sponsors/Investors/Financial
Institutions;Institutions; Sound purchasing/procurement and stores Sound purchasing/procurement and stores
management system.management system.
AUDITINGAUDITING Internal Audit control measuresInternal Audit control measures
a.a. Value Books ControlValue Books Control
b.b. Accounting for revenue collectedAccounting for revenue collected
c.c. Billing ProceduresBilling Procedures
d.d. Performance Monitoring Performance Monitoring Routine (internal) auditing will Routine (internal) auditing will
include pre-auditing of financial include pre-auditing of financial documents to eliminate errors and documents to eliminate errors and disclose fraud.disclose fraud.
AUDITING (cont’d)AUDITING (cont’d)
Routine auditing will ensure that:Routine auditing will ensure that: The organisation’s policies are The organisation’s policies are
fulfilled;fulfilled; Information it requires to Information it requires to
manage effectively are reliable, manage effectively are reliable, complete and secured;complete and secured;
AUDITING (cont’d)AUDITING (cont’d)
The DA’s assets are safeguarded;The DA’s assets are safeguarded; The internal control system is well The internal control system is well
designed;designed; The internal control system is The internal control system is
working in practice;working in practice; There is value for money.There is value for money. External (Periodic) AuditingExternal (Periodic) Auditing
PARTICIPATORY BUDGETING PARTICIPATORY BUDGETING
Regular interactions between Regular interactions between Assembly member and his/her Assembly member and his/her electorate.electorate.
To know the DA’s policy directionTo know the DA’s policy direction To assess the needs of the electorate/ To assess the needs of the electorate/
community as stakeholderscommunity as stakeholders To make reasonable demands for the To make reasonable demands for the
satisfaction of those needs satisfaction of those needs
PARTICIPATORY PARTICIPATORY BUDGETING (cont’d)BUDGETING (cont’d)
Resource mobilization and consensus Resource mobilization and consensus building in the fixing of fees, rates, etc. building in the fixing of fees, rates, etc. and public acceptance of the Budget in and public acceptance of the Budget in principle (consultation with rate-payer principle (consultation with rate-payer groups).groups).
• Lessons of Participatory Budgeting: Lessons of Participatory Budgeting: Puts enormous stress on scarce Puts enormous stress on scarce
resources of DA due to competing resources of DA due to competing demands;demands;
Communities with ineffective Assembly Communities with ineffective Assembly members tend to benefit less;members tend to benefit less;
PARTICIPATORY BUDGETING PARTICIPATORY BUDGETING (cont’d)(cont’d)
Improves development as Improves development as communities associate themselves communities associate themselves voluntarily and willingly with voluntarily and willingly with projects/programmes;projects/programmes;
Where rate payers contribute to the Where rate payers contribute to the determination of fee levels there is determination of fee levels there is likelihood of they paying willingly and likelihood of they paying willingly and therefore the possibility of improved therefore the possibility of improved revenue to the DA.revenue to the DA.
CONCLUSIONCONCLUSION
Revenue Enhancement StrategiesRevenue Enhancement Strategies Internal Re-organisationInternal Re-organisation Revenue Collection MethodologyRevenue Collection Methodology ComputerizationComputerization Internal Audit ControlInternal Audit Control EnforcementEnforcement Logistics supportLogistics support Motivation of CollectorsMotivation of Collectors
NEW SOURCES OF NEW SOURCES OF REVENUEREVENUE
Increase in Road Fund allocations to Increase in Road Fund allocations to DAs DAs
Ceding of the Administration of Ceding of the Administration of Public Lands to DAsPublic Lands to DAs
Levies on utility services whose end-Levies on utility services whose end-products create nuisance in terms products create nuisance in terms of environmental sanitation, etc. for of environmental sanitation, etc. for DAs, e.g.. Ghana Water Co. Ltd.DAs, e.g.. Ghana Water Co. Ltd.
City TaxCity Tax Appropriation of part of Airport Tax Appropriation of part of Airport Tax
by DAs.by DAs.
NEW SOURCES OF REVENUE NEW SOURCES OF REVENUE (cont’d)(cont’d)
Increase in investments through Increase in investments through Public-Private PartnershipsPublic-Private Partnerships
Intensify NGO involvement in DA Intensify NGO involvement in DA activities, e.g.. capacity buildingactivities, e.g.. capacity building
Municipal (District) Bonds.Municipal (District) Bonds.
ACCRA METROPOLITAN ASSEMBLYBUDGET ITEM: GARBAGE COLLECTION (TOTAL
APPROVED EXPENDITURE - ¢30BN)
MONTH JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC
EXPECTEDEXPENDITURE
2.5 2.1 2.8 2.6 2.3 2.7 2.4 2.4 2.5 2.3 2.4 3.0
TOTALEXPENDITURE TO DATE
2.5 4.6 7.410.
012.3
15.0
17.4
19.8 22.3 24.6 27.0 3.0
% OF TOTAL 8.315.
324.7
33.3
41.050.
058.
066.0 74.3 82.0 90.0
100.0
ACCR METROPOLITAN ASSEMBLY – 2002 ACCR METROPOLITAN ASSEMBLY – 2002 REVENUE RETURNS REVENUE RETURNS
REVENUE SOURCE
2002 – APPRV
BUDGET
2002 – ACT. BUDGET
% PERFORMANC
E
% OF *IGR
% OF TOTAL REVENUE
RATES:PropertyBasic
12,407,455,000
120,000,000
8,985,498,967
106,386,397
72.5
88.7
23.0
0.3
10.6
0.2
LANDS 552,500,000 272,876,645 49.4 0.7 0.4
FEES & FINES 15,000,000,000 12,340,772,940 82.3 31.5 14.5
BUSINESS OPER. PERMIT FEES
12,255,500,000 9,344,360,171 76.3 23.9 11.0
RENT ON ASSM PROPERTY
1,695,000,000 1,682,993,100 99.3 4.3 2.0
REV. FROM INV & SAVINGS
70,000,000 39,636,528 56.7 0.1 0.04
GEN. UNSPEC. RECEIPTS
6,345,000,000 6,441,987,153 101.6 16.5 7.6
SUBTOTALS 48,445,455,000 39,214,511,901 81.0 - 46.0
GRANTS & SUBV 54,231,653,000 46,067,670,875 85.0 - 54.0
GRAND TOTAL 102,677,108,000 85,282,182,776 83.1
Source: Finance Dept, Accra Metropolitan Assembly
*IGR = Internally Generated Revenue
ACCRA METROPOLITAN ASSEMBLY – ACCRA METROPOLITAN ASSEMBLY – PRIVATE PARTICIPATION IN REVENUE PRIVATE PARTICIPATION IN REVENUE
COLLECTION – 2002*COLLECTION – 2002*REVENUE SOURCE TOTAL REVENUE
COLLECTION BY PRIVATE SECTOR
% OF TOTAL COLLECTION
RATES 9,091,885,364 6,528,753,790 71.8
FEES** 12,340,772,940 3,990,000,740 32.4
RENT 1,682,993,100 1,100,198,700 65.4
LANDS 272,876,645 - -
BUSINESS OPERATING PERMIT FEES
9,344,360,171 5,322,579,500 57.0
REVENUE FROM INVEST. & SAVINGS
39,636,528 - -
GENERAL UNSPECIFIED RECIEPTS (MISCELLANEOUS)
6,441,987,153 -
TOTAL 39,214,511,901 16,941,532,730 43.2
Source: Finance Dept. Accra Metropolitan Assembly
* Internally Generated Revenue
** Excluding fees collected from house to house refuse collection service
TRANSFERS OF DISTRICT ASSEMBLIES COMMON FUND TO DISTRICT ASSEMBLIES
(1994 – 2003)YEAR APPROVED ESTIMATE
(¢ BILLIONS)ACTUAL TRANSFER
(¢ BILLIONS)% OF APPROVED
ESTIMATE
1994 34.00 38.49 113.20
1995 55.970 58.73 104.93
1996 82.132 86.443 105.25
1997 109.90 103.320 94.79
1998 141.751 136.412 96.23
1999 165.00 154.296 93.51
2000 193.10 192.329 99.60
2001 269.60 99.675 100.03
2002 367.90 109.720* 29.82
2003 577.40 403.811** 69.94
TOTAL 2,022.85 1,580.226
Source: Office of the Administrator of District Assemblies Common Fund
* Balance of the transfer had been re-scheduled over a 5 year period
** Transfer effected up to the third quarter.