Fiscal Decentralization, donor aid, capacity and service delivery in Local Governments

Abstract

The purpose of the study was to study the relationship between fiscal decentralization, donor aid, capacity and service delivery in local governments. The researcher employed a cross- sectional study design and data from 166 respondents out of 240 respondents was collected in ten districts. Data was analyzed using the scientific package for social scientists (SPSS). Spearman’s correlation coefficient, regression and ANOVA analysis were used to determine the nature of relationships between the study variables. They were also used to determine the extent to which the independent variables (Fiscal decentralization, Donor aid), and the intervening variable (Capacity) can predict the dependent variable (Service delivery). Results indicated a significant and positive relationship between fiscal decentralization and service delivery. The results showed a significant and strong positive relationship between fiscal decentralization and capacity. Results indicated a significant and positive relationship between capacity and service delivery. The results of the study indicated a significant and strong positive relationship between donor aid and capacity. While correlation results showed a significant and strong positive relationship between donor aid and service delivery, Regression results indicated that donor aid is not a significant predictor of service delivery. Results of the study showed a significant and moderate positive relationship between donor aid and fiscal decentralization. The results above imply that there is need for proper coordination between fiscal decentralization policies, donor aid, and the existing capacity in local governments to enhance delivery of public services to the people. All elements of fiscal decentralization policy and donor support should include improving the capacity of local governments in order to improve provision of public services by local governments.