Purpose: The primary objective of the study is to assess how digital governance tools influence fiscal mobilization, citizen engagement, and optimal resource distribution at the local government level. It also aims to explore the mediating role of institutional quality, economic development, and political stability in shaping these outcomes. Methodology: The study adopts a quantitative research approach using panel data from 2010 to 2022. Secondary data were collected from credible sources including the World Bank, Bank of Ghana, and Our World in Data. Ordinary Least Squares (OLS) regression was used to estimate the relationships among digitalization and the dependent variables, supported by diagnostic tests including multicollinearity, heteroscedasticity, and stationarity checks to validate model assumptions. Findings: The results reveal that digitalization has a statistically significant positive effect on revenue generation but a significant negative effect on public participation. Its impact on allocation efficiency, however, was statistically insignificant. Institutional quality and political stability were found to significantly enhance allocation efficiency, while economic development was inversely related to both public participation and allocation efficiency. These findings underscore the contextual and institutional conditions necessary for digital governance to deliver inclusive and efficient outcomes. Unique Contribution to Theory, Practice and Policy (Recommendations): The study highlights the importance of aligning digital reforms with institutional strengthening and inclusive design. Policymakers must complement technological investments with capacity-building, civic education, and targeted digital inclusion strategies to ensure equitable benefits. The findings also have implications for public sector accounting, suggesting a shift in the role of financial managers in digital governance contexts. Future research should adopt mixed-method designs to further explore the behavioral and contextual factors influencing digital transformation outcomes.
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