Challenges of Local Government Financing: The Case of SEFWI Wiawso Municipal Assembly

Abstract

Despite the important roles local governments play in the development process, they are faced with a number of challenges which hinders their smooth operations. The greatest among these challenges is financing. This study identified and discussed some key challenges faced by local governments in generating revenue internally for their operations. A case study approach was adopted to examine the sources of funding for local governments and issues and challenges that confront them. The Sefwi Wiawso Municipal Assembly (SWMA) was selected for this study. A purposive sampling technique was used where principal officers of the Sefwi Wiawso Municipal Assembly were selected and interviewed. The survey revealed that central government interventions are the lifeline of the SWMA as has been the case of almost all the District Assemblies in Ghana. It is therefore recommended that the assembly identifies innovative sources of funding to ensure diversification of their funding sources.