An analysis of the effects of equalisation funds on service delivery in selected local authorities in Zambia

Hanson Chishimba,Evaristo Nsenduluka,Eustarckio Kazonga

doi:10.4102/jolgri.v1i0.14

Abstract

Background: The government of the Republic of Zambia established the Local Government Equalisation Fund, to which each year parliament appropriates not less than 5% of the total amount of projected income taxes collected for the republic for that financial year. The purpose of the fund is to provide a source of financing for service delivery.Aim: The goal of this study was to analyse the effects of equalisation funds on service delivery in selected local authorities in Zambia.Setting: The study focused on Lusaka City Council, Luanshya Municipal Council and Chisamba and Luangwa town councils in Zambia.Methods: A concurrent mixed-methods approach was used. The population comprised registered property owners and council officials in the selected districts. The sample was drawn using stratified sampling. Data were collected using questionnaires and analysed by using descriptive statistics and regression analysis using the Statistical Package for Social Sciences (SPSS) version 25. Qualitative data were analysed using a narrative approach.Results: The expenditure composition of the equalisation funds shows that expenditure on personal emoluments accounts for a greater proportion than capital and service expenditure. There were similarities and differences in the methods of service delivery among local authorities: the use of local government enterprise, contracting out, franchises, volunteers, self-help groups and in-house provision.Conclusion: There is lack of satisfactory adherence to the guidelines on utilisation of equalisation funds for service delivery as espoused by the central government. The local authorities studied do not adhere to the prescribed guidelines on the utilisation of equalisation funds.

Highlights

The law and mandate relating to local authorities in Zambia is contained in the Republican Constitution (Amendment) Act no. 2 of 2016, with the meticulous law on local government elaborated in the Local Government Act no. 2 of 2019
Even though Lusaka and Luanshya have tried to employ a number of alternative methods of service delivery, the effectiveness of these methods is still below residents’ service expectations
The study concludes that the selected local authorities do not adhere to the prescribed guidelines for the utilisation of equalisation funds

Summary

Introduction

The law and mandate relating to local authorities in Zambia is contained in the Republican Constitution (Amendment) Act no. 2 of 2016, with the meticulous law on local government elaborated in the Local Government Act no. 2 of 2019. The law and mandate relating to local authorities in Zambia is contained in the Republican Constitution (Amendment) Act no. The Zambian constitution, as amended in 2016, holds that a local authority shall administer the district, oversee programmes and projects, make by-laws and perform other prescribed functions in the district. The amended constitution provides for the establishment of a sound, reliable and predictable financial base. This has been done to enhance capacity of local authorities to initiate, plan, manage and execute policies with respect to matters that affect the people and to promote social, spatial, financial and economic planning at the district level. The purpose of the fund is to provide a source of financing for service delivery

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Conclusion