ABSTRACT
This Chapter outlines the difficulties that district councils face to raise own revenue. It addresses whether the disadvantages associated with devolution are adequately mitigated by sound intergovernmental relations between central government and district councils. Article 176(2) (d) of the Constitution provides that ‘there shall be established for each local government unit a sound financial base with reliable sources of revenue’. The Constitution therefore suggests that the existence of strong district councils is dependent on a ‘sound financial base with reliable sources of revenue’. Article 192 seems to suggest that Parliament is merely under an obligation to allow district councils to collect taxes on behalf of the central government and to retain a portion thereof. District councils have original constitutional taxing powers under Article 191(1) of the Constitution. The over-regulation of district councils’ taxing authority discourages district councils from pursuing more methods of raising local revenue.
