Public financial management and service delivery in local governments in Uganda:

Abstract

The research evaluates Public Financial Management and Service Delivery in local governments. The dimensions for each of the variables are allocation, management systems and financial reporting under PFM and health care, education and water and sanitation under SD. The specific objectives of the research are; to establish the relationship between allocation and service delivery, to assess the relationship between management systems and service delivery and to examine the relationship between financial reporting and service delivery. The research design used by the researcher for the study is a case study and quantitative approach which is used to quantify events that examine the relationship between the independent and dependent variables through use of data collection tools like questionnaires and interviews to test the hypothesis of the study. The sample size was 70 and it was derived from Krejcie and Morgan’s table from a total population of 85. The key findings based on each objective indicate a significant positive relationship between allocation and service delivery, management systems and service delivery and financial reporting and service delivery. Based on the research, the researcher concludes that local governments prioritize allocation of public finances and distribute fiscal and administrative resources to ensure service delivery, implement management systems to cover major government business processes and also endeavor to verify and inspect financial information from budget reports although there are still loopholes in planning and budgeting where less funds are allocated to core projects and the controls in financial management systems that are being introduced. The researcher therefore recommends local governments to focus on implementing a formal procedure for budgeting and budget allocation, the management to ensure that revenues managed and collected are in compliance with set rules and regulations, ensure that management systems put in place are operating and functioning effectively as well as ensuring timely financial reporting to enable implementation of government projects among others to enhance service delivery