Dissertation Cathy

FISCAL DECENTRALISATION AND EDUCATION SERVICE DELIVERY IN PUBLIC
PRIMARY SCHOOLS IN MUKONO MUNICIPALITY, UGANDA
BY
CATHERINE ASIIMWE
17MPA/00/KLA/WKD/0031
A DISSERTATION SUBMITTED TO THE SCHOOL OF MANAGEMENT SCIENCE IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD
OF A MASTERS DEGREE IN PUBLIC ADMINISTRATION
OF UGANDA MANAGEMENT INSTITUTE
OCTOBER, 2022
DECLARATION
I, Catherine Asiimwe, hereby declare that this dissertation is my original work and has not been
submitted to any other University or Institution of Higher Learning. In circumstances where
other people’s ideas have been used, they have been accordingly acknowledged
Signature: …………………………………. Date: ………………………….
CATHERINE ASIIMWE
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APPROVAL
This is to certify that this study was conducted under my supervision and the dissertation has
been submitted for examination and award with my approval as a candidate’s supervisor.
Signature: …………………………………. Date: ………………………….
DR. MICHAEL KIWANUKA
Signature: …………………………………. Date: ………………………….
DR. ANACLET MUTIBA
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DEDICATION
This work is dedicated to my loving Guardian/Aunt Jane Kabalega and brother Rogers
Beyongyera for their moral and financial support. Above all, I give honor to God the Almighty
God for the spiritual guidance throughout the course of this study
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ACKNOWLEDGEMENT
This work has been supported by various individuals and institutions without whom completion
would have been more complicated. I with therefore to use this space to express my gratitude to
some of them. Firstly, I am grateful to my supervisors Dr. Michael Kiwanuka and Dr. Anaclet
Mutiba who played the exceptional conceptual and analytical guidance that has brought me this
far. Their proficiency, skills and supervisory attitudes has left a great mark on me as a scholar
and a practitioner
Relatedly, I feel indebted to all my lecturers at UMI who adequately guided and equipped me
with both theoretical and practical knowledge and skills required of a masters graduate. In the
same vein, I would also like to acknowledge the contribution of my classmates at UMI from
whom I enjoyed constructive and engaging discussions on various topical issues during my study
period.
Lastly but not the least, I wish to salute the management and staff of the selected schools
Mukono district not only for allowing me to conduct the study in the schools but also for the
cooperation extended to this study as respondents during data collection
Any errors and omissions are entirely mine
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TABLE OF CONTENTS
DECLARATION..................................................................................................................................i
APPROVAL.......................................................................................................................................ii
DEDICATION...................................................................................................................................iv
ACKNOWLEDGEMENT.....................................................................................................................v
TABLE OF CONTENTS......................................................................................................................iv
LIST OF TABLES.............................................................................................................................viii
LIST OF FIGURES.............................................................................................................................ix
LIST OF ACRONYMS.........................................................................................................................x
ABSTRACT......................................................................................................................................xii
CHAPTER ONE..................................................................................................................................1
INTRODUCTION...............................................................................................................................1
1.1 Introduction...............................................................................................................................1
1.2 Background to the study............................................................................................................1
1.2.1 Historical background.............................................................................................................2
1.2.2 Theoretical background..........................................................................................................4
1.2.3 Conceptual background..........................................................................................................5
1.2.4 Contextual background...........................................................................................................7
1.3 Statement of the problem.........................................................................................................8
1.4 Purpose of the study..................................................................................................................9
1.5 Objectives................................................................................................................................10
1.6 Research questions..................................................................................................................10
1.7 Hypotheses..............................................................................................................................10
1.8 Conceptual framework............................................................................................................11
1.9 Significance of the study..........................................................................................................12
1.10 Justification............................................................................................................................13
1.11 Scope of the study.................................................................................................................14
1.11.1 Geographical scope............................................................................................................14
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1.11.2 Content scope.....................................................................................................................14
1.11.3 Time scope..........................................................................................................................15
1.12 Operational definition of concepts........................................................................................16
CHAPTER TWO...............................................................................................................................18
LITERATURE REVIEW.....................................................................................................................18
2.1 Introduction.............................................................................................................................18
2.2 Theoretical review...................................................................................................................18
2.3 Related Review on fiscal decentralization and service delivery..............................................20
2.3.1Local revenue and education service delivery......................................................................20
2.3.2 Conditional transfers and education service delivery..........................................................22
2.3.3 Unconditional transfers and education service delivery......................................................24
2.4 Summary of literature review..................................................................................................26
CHAPTER THREE............................................................................................................................28
METHODOLOGY............................................................................................................................28
3.1 Introduction.............................................................................................................................28
3.2 Research design.......................................................................................................................28
3.3 Study population......................................................................................................................29
3.4 Sample size and selection........................................................................................................29
3.5. Sampling techniques and procedure......................................................................................30
3.6 Data collection methods..........................................................................................................31
3.6.1 Questionnaire survey............................................................................................................31
3.6.2 Interviewing..........................................................................................................................32
3.6.3 Documentary review............................................................................................................32
3.7 Data collection instruments.....................................................................................................33
3.7.1 Self-administered questionnaire..........................................................................................33
3.7.2 Interview guide.....................................................................................................................34
3.7.3 Documentary review check list.............................................................................................34
3.8 Quality control.........................................................................................................................34
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3.8.1 Validity of instruments.........................................................................................................35
3.8.2 Reliability of instruments......................................................................................................36
3.9 Procedure of data collection...................................................................................................37
3.10 Data processing and analysis.................................................................................................37
3.10.1 Qualitative data analysis.....................................................................................................38
3.10.2 Quantitative data analysis..................................................................................................38
3.11 Measurement of variables.....................................................................................................38
3.12 Ethical consideration.............................................................................................................39
CHAPTER FOUR..............................................................................................................................41
DATA PRESENTATION, ANALYSIS AND INTERPRETATION...........................................................41
4.1 Introduction.............................................................................................................................41
4.2 Response rate..........................................................................................................................41

4.3 Findings on background characteristics..................................................................................42
4.3.1 Gender characteristics of the respondents..........................................................................42
4.3.2 Age of the respondents........................................................................................................43
4.3.3 Findings on Respondents Academic Level............................................................................44
4.4 Empirical results on fiscal decentralisation and education service delivery...........................44
4.4.1 Findings on education service delivery in Mukono Municipality.........................................45
4.4.2: To establish the effect of Conditional transfers on education service delivery..................49
4.4.3 To establish the effect of local revenue on education service delivery...............................54
4.4.4 To assess the effect of unconditional transfers on education service delivery..................59
CHAPTER FIVE................................................................................................................................64
SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS........................................64
5.1 Introduction.............................................................................................................................64
5.1.1 Summary of findings.............................................................................................................64
5.2. Conditional transfers and education service delivery............................................................64
5.2.2 Local revenue and education service delivery.....................................................................64
5.3 Discussion of findings..............................................................................................................65
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5.3.2 Local revenue and Education service delivery.....................................................................67
5.3.3 Unconditional grants and education service delivery..........................................................69
5.4 Conclusions..............................................................................................................................70
5.5 Recommendations...................................................................................................................71

5.6 Limitation of the study............................................................................................................72
5.7 Areas for further research......................................................................................................73
REFERENCES...................................................................................................................................74
APPENDIX I: INFORMED CONSENT FORM.......................................................................................i
APPENDIX II: QUESTIONNAIRE FOR TEACHERS...............................................................................i
APPENDIX III: OBSERVATIONAL CHECKLIST....................................................................................i
APPENDIX IV: INTERVIEW GUIDE TO KEY INFORMANTS................................................................i
APPENDIX V: DOCUMENTARY REVIEW CHECKLIST.........................................................................i
APPENDIX VI: KREJCIE AND MORGAN (1970) SAMPLE SIZE DETERMINATION.............................i
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LIST OF TABLES
Table 3. 1: Sample size and sampling procedure..........................................................................29

Table 3.2: Results of the Content Validity of Instruments............................................................34
Table 3.3: Results of the Cronbach Alpha reliability test for the questionnaire............................35
Table 4.4: Response rate................................................................................................................40
Table 4.5: Findings on gender characteristics of the Respondents................................................41
Table 4.6: Findings on age structure of the Respondents..............................................................42
Table 4.7: Distribution of respondents by highest level of education...........................................43
Table 4.8: Findings on Education service delivery.......................................................................44
Table 4.9: Findings on conditional transfers and education service delivery................................48
Table 4.10: Correlation matrix for conditional transfers and education service delivery.............50
Table 4.11: Summary statistics on Local revenue and education service delivery.......................52
Table 4.12: Correlation matrix for local revenue and education service delivery.........................55
Table 4.13: Findings on unconditional transfers and education service delivery..........................56
Table 4.14: Correlation matrix for unconditional transfers and education service delivery.........58
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LIST OF FIGURES
Figure 1.1: Conceptual framework of fiscal ddecentralization and education service delivery....11
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LIST OF ACRONYMS
AAA Analytical and Advisory Assistance
BOD Board of Directors
BPS Budget Policy Statement
CG Consultative Group
CVI Content Validity Index
DEO District Education Officer
GoU Government of Uganda
IG Inspectorate of Government
IGG Inspector General of Government
MDGs Millennium Development Goals
MFPED Ministry of Finance, Planning and Economic Development
NGOs Non-Governmental Organizations
PSM Public Sector Management
PTA Parents Teachers Association
RDC Resident District Commissioner
SMC School Management Committee
TTL Task Team Leader
UNATU Uganda National Teachers Union
WBG World Bank Group
WDR World Development Report
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WGI Worldwide Governance Indicators
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ABSTRACT
The study examined the effect of fiscal decentralization on education service delivery in selected
schools in Mukono municipal council. Specifically, the study examined the effect of conditional
transfers, local revenue and unconditional transfers on education service delivery in the selected
school in Mukono municipal council. The study was a cross sectional survey adopting both
quantitative and qualitative approaches. Questionnaires, documentary review checklists and
interview guides were used to collect data from 267 participants. Whereas qualitative data was
analyzed using content and thematic analysis, quantitative data was analyzed using descriptive and
inferential statistics. In particular, measures of central tendency including means and standard
deviation were the descriptive analysis techniques, on one hand. On the other hand, all the three
hypothesis that stated that conditional transfer, local revenue, unconditional transfer that had no
significant effect on education service delivery in Mukono Municipal Council primary schools
were tested using Pearson correlation coefficient. Findings revealed a significant effect of
conditional transfers; local revenue; and unconditional transfers on educational service delivery in
public primary schools in Mukono Municipality. The study thus concluded that improvement in
conditional transfers; local revenue; and unconditional transfers will lead to improvement in
education service delivery in public primary schools of Uganda. The study therefore recommended
that central and local governments in Uganda should work out mechanisms to generate and share
more revenue under the fiscal decentralization arrangement in order to improve the overall
education delivery in local governments
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CHAPTER ONE
INTRODUCTION
1.1 Introduction
Various countries across the developed and developing divides are decentralizing responsibility
for delivery of social services from national to lower-level governments and units within local
communities. The conviction from literature and theory is that local/municipal governments have
better capacity to make expenditure allocation and revenue collection decisions that can facilitate
service delivery (Steiner, 2006). Relatedly, decentralization reform promises territorial proximity
of Local governments to their constituents enables direct beneficiaries from social services and
also holds local authorities accountable for efficient allocation of fiscal resources (Kiwanuka,
2013). It is in that pursuit that countries like Uganda put in place a fiscal decentralization
framework intended to empower local governments with high levels of financial discretion in
determining and deliver services like education (Smoke, 2000; Steiner, 2006)
This study examined the effect of fiscal decentralization on education service delivery in
Mukono District Local Government. In this study, fiscal decentralization was conceived as the
independent variable (IV) and education service delivery as the dependent variable (DV). This
chapter presents the background of the study, the statement of the problem, general objective, the
research questions, and study hypotheses. The chapter also cove the study scope, justification,
significance and the operational definitions of the terms and concepts.
1.2 Background to the study
This subsection presents the background under four perspectives including historical, theoretical,
conceptual and contextual.
1.2.1 Historical background
On a global perspective, the concern for service delivery can be traced from the 7 th Century in
England during the reign of King Henry when citizens started demanding for better services from
the state (Ruthrock, 2017). By then, the citizen demands focused on communicating the service
offerings and products, identifying and prioritizing demand for capacity development services,
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determining the appropriate level and methodology for service delivery, identifying potential
partnership opportunities and resourcing capacity development initiatives (Ruthrock, 2017). The
need to reach out to the grass root people, and as part of the global development agenda, have
greatly occasioned the need to improve services governments do provide to the citizens. On the
Africa context, issue of service delivery in general and education service delivery in particular
became prominent in the 1950s with the emergence of cooperative movements that led to various
reforms. Public sector entities were under increasing pressure to demonstrate that their services
are citizen-focused and that continuous performance improvement was being adhered to
(Mulumba, 2015).
In Uganda, the drive to improve management in cooperative movements gave birth to reform
programmes in service quality to increase efficiency, effectiveness, and the delivery of quality
service to the public. A series of sector reforms intended to improve service delivery and satisfy
the public (citizens) were implemented in Uganda in the 1960s among which was education
service (Mulumba, 2015). Scores of successes were initially recorded in all reform areas of the
1960s and early 1970s. Services in education were controlled based on set principles, standards,
policies and constraints to guide the designs, development, deployment, operation and retirement
of services delivered by a service provider with a view to offering a consistent service experience
to a specific user community in a specific manner (Ssewaya, 2013). Service was provided by
government to people living within its jurisdiction, either directly (through the public sector) or
by collaborating with or transferring the responsibility to other entities (Raimo, 2011).
Over the last three decades, many countries around the globe have devolved fiscal and political
powers to sub-national governments. According to Garman et al. (2001), more than 80 percent of
developing countries had been undergoing some decentralization of authority by the beginning of
the millennium and this picture is not very different for developed countries. Indeed globally,
more than 70% of countries have decentralized since 1950 (Hoge et al., 2010). Although
decentralization is motivated by different reasons for different countries, a large number of
unitary countries have sought decentralization as a means of searching for a more efficient and
leaner public sector recently.
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The current decentralization in Uganda began under the auspices of the Resistance Council
Structures (Kauza 2009) and the need to popularize them. Subsequently, decentralization has
been molded to suit the delivery of better services to the people. It was assumed that once
decentralization was undertaken by Government, the local people would ‘own’ the government
programs and become more willing to participate, possibly contribute to the design and
implementation of programs, and even be more willing to pay taxes (Sabiti, 2010).
The decentralization Reform in Uganda is one of the bold policy decisions that the country has
made. Often castigated as ambitious, the policy sought to reverse the centralist tendencies that
characterized Government work, through devolution as the best form of decentralization. Over
these years through reforms, decentralization in Uganda has changed in form, shape, perception
and image. Fiscal decentralization is one of such decentralization reform put up to empower
devolved authorities in the country with planning, budgeting and expenditure discretion
(Kiwanuka, 2013)
1.2.2 Theoretical background
The study was underpinned by the Systems Theory advanced by Ludwig (1968) to understand,
explain and predict education service delivery in Uganda. The theory postulates that
organizations are composed of various and complex subsystems that although may not
necessarily relate to one another must work together to maintain the continuity of the whole
system. The gist of the systems thinking is that complete systems are made up of different
subsystems with each playing a significant and supplementary role towards the realization of
conglomerated results. This proposition implies, therefore, that any dysfunction in any of the
subsystems will bring the whole system to a halt.
With its roots in biology and other natural systems sciences, the Systems theory is today more
commonly applicable to all settings and types of organizations including education service
delivery in schools. The theory enables tracking and understanding key organizational
components like organizational behavior, organizational change and organizational development.
The motivation for this theory has been increasing awareness not only of the importance of
policy implementation and bureaucratic performance, but also their complexity and
unpredictability (Ludwig von Bertalanffy, 1950). The system approach theory to service delivery
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was used in reference to service delivery in different inter-related sectors such as education,
health, commerce and public administration which work together within the system.
Within the context of this study, education service delivery in the public primary schools within
Uganda was perceived to be a direct result of the interface of various actors, processes and
institutions both vertically and horizontally. This is in respect with how education service
delivering institutions operate and sustain themselves with their environments. Systems theory
allowed this study to understand the connections between various components/players in the
education service and how they interact with one another to improve its delivery. Some of such
components include Mukono municipality council, the fiscal decentralization system, primary
schools, parents, pupils and regulators. To the education system, the above implies that there
would be prioritization based on contextual needs and realities, something that would
subsequently improve education services.
1.2.3 Conceptual background
The key concepts in the study were fiscal decentralization and service delivery. Fiscal
decentralization refers to the transfer of responsibility for fiscal policies from the national level
to the region, sub- region, or local levels of government (Kiwanuka, 2013). It involves shifting
some responsibilities for expenditures and/or revenues to lower levels of government. One
important factor in determining the type of fiscal decentralization is the extent to which sub-
national entities are given autonomy to determine the allocation of their expenditures. For
purposes of this study fiscal decentralization sources were measured in terms of conditional
transfers, local revenue and unconditional transfers.
According to Dawes (2016), conditional grants are monies transferred for a specific purpose that
may not be used for any other project. Conditional grants can be given by the Provincial and
Federal governments as well as by local governments. According to Hudson (2015), local
revenue are the incomes of a government from taxation, excise duties, customs, or other sources,
appropriated to the payment of the public expenses. Local Government Enabling Environment is
defined by Christy (2009), as a set of policies, institutions, support services and other conditions
that collectively improve or create a general business setting where enterprises and business
activities can start, develop and thrive.
4
Service delivery on the other hand refers to describe the distribution of basic resources to citizens
like water, electricity, sanitation infrastructure, land and housing (Barongo, R. 1999). Service
delivery is the willingness of service providers to promptly provide service that match accurately
with consumer expectations. This study assumed that education services are provided to students
and parents as the most beneficiaries or end user of education services provided by the
government through schools. It is the ability to deliver service as desired by customers and to
deal effectively with any consumer complement (Becker & Green, 2010).
According to Barakat & Urdal, (2015), educational service delivery is a tool which describes
programming options for students who meet the criteria for exceptionality as defined by the
Ministry of Education. Exceptionality is a term used by the Ministry of Education to identify
patterns of strengths and needs common to groups of students. These strengths and needs may be
cognitive, emotional, behavioral, medical, social, and/or physical. Students with exceptionality
may access a range of school-based services depending on the students’ needs and level of
functioning.
Under decentralized fiscal approach, the study assumed that powers over decision-making and
implementation of education services have been transferred from the Central Government to
lower administrative levels in the education sector so as to improve efficiency and effectiveness
of education service (Smoke, 2000). Uganda’s decentralization policy framework seeks to
promote popular participation by empowering local people to make decisions that affect their
wellbeing and to enhance transparency, performance, accountability, efficiency, effectiveness
and responsibility in the management of public resources and delivery of services (Barongo,
1999). It is upon these attributes that the theory sought to show how they have been embraced
within the system.
1.2.4 Contextual background
The context of this study was Mukono Municipal Council in Mukono District. The education
services delivered in the municipality to a big extent depends on the amount of money budgeted
and actually received. In line with Uganda’s fiscal decentralization framework, the schools’ key
fiscal instruments include intergovernmental transfers (conditional and unconditional grants) and
any revenue generated locally by the schools. The locally generated revenue in most primary
5
schools in Mukono municipality just like elsewhere in the district has been at a declining trend,
which is affecting education service delivery in the municipality.
The existing classrooms in most schools have leaking roofs and others the roofs were blown off
by wind during the rainy season (District Education Officer Report, 2017). Lessons are contacted
under trees hence it forced many learners to drop school (Musinguzi, 2018). Mukono District
Local Government continues to be heavily dependent on central government transfers, which
accounted for over 95% of district revenue which money is not released on time. Locally-
generated revenue is about 3% while donor funding stood at 2%. For a district that has been
referred to as a model of development among local governments, Mukono Districts budget
performance left a lot to be desired during the financial 2017/2018 (Mukono District Annual
Budget Allocations, FY 2017/18).
Because of the fiscal decentralization constraints explained above, schools in Mukono

municipality are faced with staffing challenges in terms of the availability qualified and well
experienced teachers. They employ unqualified teachers in order to minimize on the operational
costs and this tends to affect the quality of the education they offer. Mukunde (2017) asserts that
some professional teachers have left teaching in particular private secondary schools and
administrators of such schools have resorted to employing unqualified teachers to handle the
teaching. There are fears that perhaps the massive expansion in private schools without
commensurate expansion in facilities, learning materials and teachers may affect the quality of
education.
1.3 Statement of the problem

Fiscal decentralization reform in Uganda was intended to support and strengthen service delivery
in Local Governments. The presumption was that the fiscal autonomy, derived from the fiscal
decentralization, in determining revenue to manage their things in such ways that give the
maximum public benefits (Kiwanuka, 2013). In same pursuit, both Mukono Municipality and
the schools therein are supposed to explore the fiscal instruments (conditional grants,
nonconditional grants and local revenue) to increase their autonomy, widen local participation in
decision making and consequently improve education service delivery.
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However, the fiscal decentralization set up described above is yet to be reflected in improved
education service delivery. Mukono Municipality schools for example have witnessed rampant
incidences of teacher absenteeism in public primary schools (Mukono Report, 2018). Relatedly,
it is also reported in the same report that many teachers do not attend to their duties as educators
even when they are present in school. Along with the above service delivery challenges is the
inadequate teacher lesson preparation, low syllabus coverage and late coming. In addition,
deteriorating education standards were reported (Education Standard Agency, 2018).
It’s suffice to state that the inefficiencies within the fiscal decentralization framework has direct
and roll over effects to education service delivery in Uganda. Inadequate financial resources
affects the funds available for both capital development and operational expenditures of the
schools. It does also affect the motivation and commitment of teachers. The resultant
absenteeism among teachers then affects the quality of education delivered. Teachers are
devoting less time to extracurricular activities, teaching preparation and marking. This has
compromised the quality of education in most schools in Mukono (Mukono Report, 2018).The
question remains whether fiscal decentralization has improved education service quality and
quantity by incentivizing staff to improve performance and achieve results in Mukono District.
The study therefore study sought to examine the effect of fiscal decentralization on education
service delivery in Mukono District, Uganda.
1.4 Purpose of the study
The purpose of the study was to examine the effect of fiscal decentralization on education
service delivery in Mukono District Local Government.
1.5 Objectives
The study was guided by the following research objectives;
1) To examine the effect of conditional transfers on education service delivery in the
selected schools in Mukono district Municipal Council.
2) To establish the effect of local revenue on education service delivery in the selected
schools in Mukono Municipal Council.
3) To assess the effect of unconditional transfers on education service delivery in the
selected schools in MukonoMunicipal Council.
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1.6 Research questions
The study was guided by the following research questions;
1) What is the effect of conditional transfers on education service delivery in the
selected school Mukono municipal council?
2) How does local revenue affect education service delivery in selected school Mukono
District Municipal council?
3) What is the effect of unconditional transfers on education service delivery in the
selected schools in Mukono Municipal council?
1.7 Hypotheses
The study was guided by the following research hypotheses
1) Conditional transfers have no significant effect on education service delivery in Mukono

Municipal Council.
2) Local revenue has no significant effect on education service delivery in Mukono

Municipal Council.
3) Unconditional transfers have no significant effect on education service delivery in

Mukono Municipal Council.
1.8 Conceptual framework
The conceptual framework presented below describes the relationship between fiscal
decentralization and education service delivery.
Fiscal decentralization
Independent variables
8
Conditional Transfers Dependent Variable
Equalization grant
Salary Education service delivery
Pension
Gratuity Grades in national exams
Education service
Construction delivery—
of P/S facilities
New building grant
Classroom, library, computer lab etc.
Responsiveness
Local revenue Teachers’ attendance frequency
Taxes
Fees
Licenses
Unconditional Transfers
Support for decentralized
services
Allowances
Figure 1.1: Conceptual framework of fiscal ddecentralization and education service

delivery
Source: Oats (1972) - Modified by Researcher
The independent variable was fiscal decentralization and the dependent variable was education
service delivery. Fiscal decentralization was measured in terms of conditional grants,
unconditional grants and local revenue. Conditional transfers referred to equalization grant,
salary and pension. Local revenue referred to taxes, fees and licenses. Unconditional transfers
were looked at support for decentralized services and allowances. Education service delivery was
measured in terms of responsiveness, grades in national exams, number of qualified teachers,
Remuneration of teachers, infrastructures availability and teacher attendance frequency. Local
revenue is paramount in the running of local governments. It is assumed that effective transfer
systems and adequate local revenue generation will lead to improved service delivery. In order to
bolster revenue, there are several other revenue sources, including local option taxes, service
9
charges, and fees levied by municipalities, counties or special district governments with state
approval. These additional sources help municipalities/local governments, especially smaller
cities, gain financial stability, broaden the tax base, expand the types of activities taxed and
increase their independence from state and federal finances
1.9 Significance of the study
The study findings are hoped to be useful in that it identified gaps in fiscal decentralization and
came out with recommendations regarding how gaps can be filled. This can help Mukono district
and the central government to streamline practices and develop applicable policies that can guide
effective use of public funds to support delivering public services.
The study findings are expected to help policy makers and policy advocates in formulating or
advocating for appropriate policies to align fiscal decentralization and education service delivery
into mutually reinforcing associations. In particular, the study findings may help decision and
policy makers in the Ministry of Local Government and Ministry of education to come up with
new policies for the improvement of education grades in Mukono District.
The study findings by identifying inherent gaps in the fiscal decentralization set-up in Mukono
and thereby provide information that may inform recommendations to the Central Government.
The recommendations may in respect with how the use of public funds can be improved to
enhance local government’s role of delivering public services. In general, the study will provide
current empirical data on the relationship between Fiscal decentralization and service delivery in
Local Governments in Uganda.
The study findings are also expected to add value to the body of existing knowledge and perhaps
lead to ventures in further research relating to fiscal decentralization and service delivery in local
governments. The study findings may also provide a basis for more empirical inquiry in the
subject area
1.10 Justification
My curiosity to undertake the study was drawn by the steady decline of education service
delivery in UPE schools in Mukono District despite enormous government investment to
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strengthen fiscal decentralization. Whereas the government of Uganda has used fiscal
decentralization to strengthen local government’s performance through increasing their
autonomy, widening local participation in decision making and streamlining fiscal transfer
modalities to local governments, the reality on ground in Mukono District reveals persistent
decline in education service delivery. Hence there is need to find out the extent to which fiscal
decentralization has its role in enhancing education service delivery in Mukono District. Given
the limited studies on fiscal decentralization education service delivery, there was need to carry
out a study on fiscal decentralization and ascertain the extent to which it has been invoked in
Uganda
1.11 Scope of the study
The section presents the boundaries within which the study was undertaken. It presents the
geographical, content and time scope of the study.
1.11.1 Geographical scope
The study was carried out in selected primary schools in Mukono Municipal Council, Mukono
District. Although Mukono municipality has many schools, the selected schools were deemed to
represent the characteristics and issues in all public primary schools in the municipality
1.11.2 Content scope
This study content scope was limited to fiscal decentralization and education service delivery.
Fiscal decentralization was measured in terms of conditional grants, unconditional grants and
local revenue. Education service delivery observed by responsiveness, academic performance,
qualified teachers, and teacher attendance
1.11.3 Time scope
The study covered the period 2016 to 2019. This is the period the municipality experienced a
bigger education service delivery (Mukono Report, 2018).
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1.12 Operational definition of concepts
Central government: Is the political authority that governs an entire nation.
Expenditure: Is payment of cash or cash-equivalent for goods or services, or a charge against

available funds in settlement of an obligation
Grants: Are non-repayable funds or products disbursed by one party (grant makers), often a
government department, corporation, foundation or trust, to a recipient, often (but not always) a
nonprofit entity, educational institution, business or an individual.
Local government: An administrative body for a small geographic area, such as a city, town,
county, or state.
Revenues: Is the income of a government from taxation, excise duties, customs, or other
sources, appropriated to the payment of the public expenses.
Local revenue: refers to the incomes accruing from taxation to a government during a specified
period of time, usually a year.
Fiscal decentralization: was used to coin down the means through which local governments
raise revenue that means fiscal decentralization was measured in terms of conditional transfers,
local revenue and unconditional transfers
Education service delivery: was measured in terms of responsiveness, grades in national exams,
number of qualified teachers, infrastructures availability and teacher attendance frequency.
Private Secondary Schools: These are schools that were founded by entrepreneurs as
commercial ventures and they are not financially aided by the government but guided by the
Ministry of Education and Sports.
Quality education: In this study quality education is measured by the exam grades, discipline,
completion of lower secondary and student participation in academics.
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Infrastructural facilities: These are the typical structures and instructional materials that aid the
learning process e.g., classrooms, libraries, laboratories, toilets, dormitories, text books, teaching
aids.
Staffing: This refers to the availability of quality teaching staff measured by experience,
qualifications and quantity.
13
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
Mukono District Local Government, Uganda. This chapter covers the theoretical and related
review of literature in line with the study objectives. The literature was reviewed from journals,
textbooks, working papers, dissertations and internet websites. In particular, the presentation of
this chapter begins with the theoretical review, followed by review of related literature and then
summary of the literature reviewed.
2.2 Theoretical review
The study was underpinned by the Systems Theory by Ludwig (1968). As described in the
previous chapter, the theory was posits an interaction between inputs and outputs within the
system of reference. In the context of this study, education service was perceived to be delivered
through an open system of administrators, teachers, politicians, parents, regulators, among
others, who must interdependently play their roles in order to maintain continuity (Pritchett,
2015). Research has recently emerged in education as a system through which massive funds has
been invested in textbooks, hiring of new teachers, and increased salaries with hope to have a
young generation with knowledge and skills (Glewwe and Muralidharan, 2015; World
Development Report — WDR, 2017). De Reeet al. (2015) asserts that massive investment has
been observed in the education system in Indonesia. The government of Indonesia doubled
teacher wages incurring an expenditure of nearly 4.5 billion USD which produced near-zero
impact (De Reeet al., 2015). Research from India and Africa shows that reduction in class-sizes
does not always produce the desired impact if other systemic features such as teachers, incentive
structures, and curriculum do not change (Pritchett 2015).
Therefore, learning remains starkly low - according to the UNESCO Global Monitoring Report
(2014) where it is indicated that 250 million children are unable to read, write, or do basic
mathematics, and 130 million of those children are in school. This has led researchers and
14
practitioners to argue that the global learning crisis requires addressing system weaknesses and
making the whole education system within a country coherent with learning (Pritchett 2015,
WDR 2018). This puts a greater weight on understanding the interdependencies between various
components such as education systems policies and institutions for governance, accountability,
information, financing rules, and school management need to be assessed rather than focusing on
the concern of the learners (World Bank 2014 and WDR, 2018).
The descriptive frameworks of education systems are to show what is included within systems
examination. The World Bank SABER and UNESCO GEQAF initiative are two most examples.
SABER at the World Bank adopts an inventory approach and defines the education system
components in terms of its functions by identifying 13 different education sub-systems which
need to be catered for, if the system of education is to effect decentralized resources. These
include; 1) early childhood development (ECD); 2) education resilience; 3) education
management information systems (EMIS); 4) the private sector; 5) equity and inclusion; 6)
information and communication technology (ICT); 7) school autonomy and accountability; 8)
school finance, 9) school health and school feeding; 10) student assessment; 11) teachers; 12)
tertiary education; and 13) workforce development.
According to GEQAF, there are only five (5) components of the education system the central
government need to consider in its decentralized approach. These include; 1) supporting
mechanisms (which includes governance, financing and system efficiency); 2) core resources
(which includes curricula, learners, teachers and the learning environment); 3) core processes
(which includes learning, teaching and assessment); 4) desired outcomes (which includes
competencies and life-long learning; and 5) development goals (which includes relevance and
equity). The decentralized framework needs to consider these entities in the due course of
financial disbursement.
2.3 Related Review on fiscal decentralization and service delivery

2.3.1Local revenue and education service delivery
Delta (2018) looks at revenue as inflow of resources that the government demands, earns, or
receives. Revenue comes from two sources: exchange transactions and non-exchange
transactions (Ruthrock, 2017). Accordingly, exchange revenues arise when a government entity
15
provides goods and services to the public or to another Government entity for a price (Redan,
2018). However, the term "revenue" does not encompass all financing sources of government
reporting entities, such as most of the appropriations they receive. These other sources of
financing provide resource inflows to government reporting entities, so this statement includes
accounting standards for them thus enhancing education service delivery
Kakuma (2018) noted that revenue is the income a local government needs to pay for all of the
services it provides. A revenue structure describes the many sources of income a local
government receives (Greenwood, 2017). The major sources of revenue include taxes, other
revenue sources and intergovernmental transfers, which are defined below (Yu-Hung Hong,
2018). Since local governments are corporations of state government, local revenue structures
are largely determined by state doctrine (Greenwood, 2017). While state governments generally
aim to provide sufficient autonomy and support to local governments, there are fifty state-local
revenue systems that even vary within states. In this case, autonomy refers to the amount of
authority a municipality has over its ability to initiate or modify the types and amounts of
revenue it receives.
Kivumbi (2017) noted that taxes are an essential source of revenue for all levels of government.
Like other parts of the revenue structure, tax revenue setting by municipalities is restricted by
state governments (Tezra, 2017). States are not uniform in their approach to allowing
municipalities to utilize the three major sources of tax revenue property, sales and income taxes
usually permitting some combination (Kakuma, 2018). In some states, municipalities receive
revenue from two of these taxes, usually some combination of property and sales taxes (Basheka,
2016). Local governments almost everywhere are thus urged to make more use of property taxes,
and criticize when they do not do so enthusiastically (Munyanyo, 2018). It should, however, be
noted that local sources such as property taxes, graduated taxes; market dues etc. are often the
most unpredictable revenue sources due to a number of reasons (Kakuma, 2018). The revenues
collected through taxes should serve as a tool to improve education service delivery. However
sometimes the revenue may be poorly administered most especially when there is lack of
political commitment to collect the revenue from these sources.
The full potential of raising own local revenue is therefore not fully realized. Onyach-Olaa
(2018) sadly established that in Uganda, LG own revenue sources presently constitute less than
16
10% of the total local government funding (Ssegawa, 2013). Even the little that is collected is
fragmented in some unique sharing arrangements. In the rural areas revenue is collected by the
sub-county, which retained 65% and transfers 35% to the district for service delivery. Out of the
65% retained by the sub-county, 5% is to be remitted to the county council, and 5% to be
distributed to the parishes, and 25% distributed to the village councils (Mulumba, 2017). There
are no clear service delivery responsibilities for the lower councils to justify the fragmentation of
these funds. However, the researcher noted that Onyacha does not mention the local revenue
sources and how the revenue is collected which was the central focus of the researcher.
In order to bolster revenue, there are several other revenue sources, including local option taxes,
service charges, and fees levied by municipalities, counties or special district governments with
state approval. Munyanyo (2016) noted that taxes are an essential source of revenue for all levels
of government. Like other parts of the revenue structure, tax revenue setting by municipalities is
restricted by state governments. States are not uniform in their approach to allowing
municipalities to utilize the three major sources of tax revenue property, sales and income taxes
usually permitting some combination. The basic information database such as property roll,
taxpayers’ registers, rates etc. is inadequate
2.3.2 Conditional transfers and education service delivery

Central government transfers create substantial budget unpredictability that destabilize the
smooth running of the municipality’s finances and make budgeting a nightmare (Kimuli, 2016).
Meyers (2016) strongly criticized the conditional grants (earmarked funds), off-budget funding
and unpredictability of central government transfers as major weaknesses in public sector
budgeting (Ryan, 2013). He argues that conditional grants undermine the effectiveness of the
budgets and service delivery (Ruthrock, 2017). The reason he gives is that users of conditional
grants have little or no incentive to economize or achieve value for money (Dunstan, 2015).
Interestingly, MoLG (2017) acknowledges that in Uganda the conditional grants guidelines and
policies by-pass LG structures. The local governments have very little involvement in the
planning of the services delivered (such as roads, health care and education). This implies that
education service delivery will be poor in such cases. The authors are silent on conditional grants
extension hence how they are extended which aspect this study emphasized.
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Conditional cash transfer (CCT) programs aim to reduce poverty by making welfare programs
conditional upon the receivers' actions (Jedran, 2018). The government (or a charity) only
transfers the money to persons who meet certain criteria (Tezra, 2017). These criteria may
include enrolling children into public schools, getting regular check-ups at the doctor's office and
receiving vaccinations (Dunstan, 2017). Conditional cash transfers are unique in seeking to help
the current generation in poverty, as well as breaking the cycle of poverty for the next through
the development of human capital (Scholz and Mai, 2018). Despite the eloquence, administrative
efficiency and effectiveness of some conditional grants have remained dreams in most
administrative systems most especially District local governments like Mukono. In a nutshell
when conditional transfers are not properly handled, education service delivery will be in local
governments especially Mukono.
Conditional cash transfer (CCT) programs have spread rapidly over the last decade in the
developing world. Conditional cash transfer (CCT) programs provide cash transfers to poor
families that are contingent on children’s educational and health investments, typically school
attendance and regular medical checkups, with the goal of breaking the intergenerational cycle of
poverty (Ruthrock, 2017). As of 2010, all but two countries in Latin America and over 15
countries in Asia and Africa had a conditional cash transfer (CCT) program as part of their social
protection systems (Tezra, 2017). In Latin America alone, Conditional cash transfer (CCT)
programs benefit over one hundred and ten million people.
Kitonsa (2017) noted that few development initiatives have been evaluated as rigorously as CCT
programs. The implementation of conditional cash transfer programs has been accompanied by
systematic efforts to measure their effectiveness and understand their broader impact on
household behavior, a marked departure from the limited attention that was paid to rigorous
impact evaluations in the past (Redan, 2018). These evaluations reveal that conditional cash
transfers can provide effective incentives for investing in the poor human capital thus improving
service delivery (Yus, 2017). CCTs have affected not only the overall level of consumption, but
also the composition of consumption (Yus, 2018). There is a good deal of evidence that
conditional transfers may be helpful most especially when they are effectively utilized which
may not be the case of some District Local Governments in Uganda. The researcher noted that
CCTs have resulted in sizeable reductions in poverty among recipients especially when the
18
transfer has been sufficient, well targeted, and structured in a way that does not discourage
recipients from taking other actions to escape poverty. The support to the education function has
been a great contribution to the realization, improvement and provision of quality education
services.
2.3.3 Unconditional transfers and education service delivery

Programs that transfer money, usually to poorer households, without requiring that the recipients
fulfil any criteria. UCs aim to reduce the need for child labor, and to offset other financial related
barriers hindering school attendance. Unconditional transfers (UCs) are less costly to implement,
and it is argued that if poverty is the main educational constraint, families will use additional
funds towards education, even in the absence of set requirements (UNESCO, 2015). UCs can
also empower households to make their own decisions for their children.
According to Kanana (2017), the popularity of decentralization and in particular fiscal

decentralization has been propelled by bad habits of centralized governments. Such habits like
wasting resources on non-priority programs, speckled works with uncoordinated and poor
monitoring since all the powers are held at the center leading to poor education service delivery
(Ssegawa, 2013). On the other hand, centralized governments are also characterized by ills such
as bureaucracy, corruption, political alienation and nepotism among others that make it very
difficult for governments to provide timely and quality services to the people. There is therefore
no doubt that in recent times, the governments of China, Nigeria, Sudan and Uganda are battling
with their citizens and political movements who want decentralized states under the umbrella of
federalism at the expense of centralization of powers
Decentralization has become a very popular method adopted by countries intending to bring
services closer to their population. Among the most important elements of decentralization is
fiscal decentralization which encompasses relinquishing taxation powers from the central
governments to local administrative units, commonly referred to as local governments (Malesky,
2015; Akinyele, 2016). According to Thiessen (2017), central governments could be more
inclined to spend less on issues of local concern such as education, child care, and local
infrastructure and rather concentrate more on national defense. Under conditional transfers, local
communities serve as “research labs” for the rest of the country (Osborne, 2018).
19
Decentralization allows experimentation and innovation in the public-service production process
(Tanzi, 2016). Local experimentation may lead to increased technological progress in the
production of governmental goods and services and public policy (Oates, 2019). When local
communities develop and implement economic development programs in a decentralized system,
programs are first implemented on a relatively small scale. If the program is a success, then other
parts of the country may adopt it, too. However, if the program fails to meet its objectives, then
only a few local communities will suffer rather than the whole nation.
According to Rot (2019), the recent legislation that transfers the responsibility for welfare
programs to the states represents a recognition of the failure of existing programs and an attempt
to make use of the states as laboratories to find out what sorts of programs work best. Dout
(2016) indicated that fiscal decentralization is one cost effective way of increasing competition
and lowering government spending by strengthening local political structures for better planning,
resource allocation and monitoring of government programs (Busemeyer, 2017). Fiscal
decentralization has been at the center of surge in economic development in many developing
countries such as China, Nepal and Chile among others (Faguet, 2018). Notably however is that
decentralization policies including fiscal decentralization have been seen as an important tool in
revenue performance and therefore instrumental in providing services closer to people in large
and densely populated economies. The emerging findings indeed confirm the existence of a
strong reciprocal relationship between unconditional transfers and education service delivery.
2.4 Summary of literature review
The literature review above has been informed by theoretical and empirical studies. However,
many of such studies on the subject were based on developed countries that are characterized
with well-developed education systems yet the current study centered on a development country.
Moreover, most of the studies reviewed adopted qualitative approaches in contrast with a
triangulation used in this study. Other partinent studies including Kivumbi (2016);
Dugget(2015); Munyanyo (2015) address the aspect of fiscal decentralization using theoretical
lens. In bridging the gap this study widened the scope by approaching local revenue sources
framework from a development approach aspect with special emphasis on service delivery. The
20
scholars did not specifically focus on the variables as laid down in the conceptual framework of
this study. such and more are the knowledge gaps that this study attempted to address
21
CHAPTER THREE
METHODOLOGY
3.1 Introduction
Mukono District Local Government, Uganda. This chapter presents and describes methods that
were used in conducting this study. In particular, the chapter articulates the research design,
study population, sample size and selection, sampling techniques and data collection methods.
The chapter also covers the data methods, data collection instruments, data quality control
(validity and reliability), procedure of data collection, data analysis and measurement of
variables.
3.2 Research design
The study was a cross sectional survey that adopted both qualitative and quantitative approaches.
The cross sectional survey was intended to enable a onetime investigation of phenomena
(Kothari, 2004). Furthermore, the cross sectional survey design validated emerging constructs
and proposition in the data set thereby guiding the study of various units within the identified
case by underlining the mechanism by which an incident is brought to being.
The study also applied a triangulation of both quantitative and qualitative approaches was
adopted for purposes of getting a hybrid of responses both numerical and value-loaded and
perceptive ideas regarding service delivery. Triangulation means using more than one method to
collect analyzing and reporting data on the same topic (Somekh &Lewin, 2005). This is a way of
assuring the validity of research through the use of a variety of methods to collect data on the
same topic, which involves different types of samples as well as methods of data collection
(Groves et al. 2009). However, the purpose of triangulation was not necessarily to cross validate
data but rather to capture different dimensions of the same phenomenon (Kothari, 2004). As
noted by Creswell (2009), quantitative methods are more objective and help to investigate the
relationships between the identified variables. On the other hand, the study applied qualitative
approaches which involved in depths probe and application of subjectively interpreted data. In
context of this study) the qualitative research aimed at gathering an in-depth understanding of
human behavior and the reasons that govern such behavior. The quantitative and qualitative
22
approaches were adopted in sampling, collection of data, data quality control and in data
analysis.
3.3 Study population
The study population was 798 respondents drawn from the government owned primary schools
in Mukono Municipality. The specific population categories were teachers (763), head teachers
(33), one District Education Officer (DEO) and one District Inspector of schools (DIS). These
population categories were deemed sufficient to inform the study
3.4 Sample size and selection

The sample size for this study was 272 determined using statistical tables of Krejcie and Morgan
(1970) cited from Amin (2005) from the population of 798. The sample size and sampling
procedures are illustrated in table 3.1
23
Table 3. 1: Sample size and sampling procedure
population Category Study Sample size Sampling technique

Population
Head teachers 33 30 Simple random sampling
Teachers and DoS 763 240 Simple random sampling
DEO 1 1 Purposive sampling
DIS 1 1 Purposive sampling
Total 798 272

Source: Mukono District Education Manual ( 2020)
3.5. Sampling techniques and procedure
The study used both randomized and non-randomized sampling approaches to select
respondents. In particular, purposive and simple random were the sampling techniques used for
non-randomized and randomized approaches respectively.
3.5.1. Purposive sampling
Purposive sampling in this study referred to a sampling technique that involves identification and
selection of individuals or groups of individuals that were proficient and well-informed with a
phenomenon of interest (Mugenda & Mugenda, 2005). In particular, purposive sampling was
applied in the selection of the DEO and DIS. Those population categories were the key
informants in the study and were presumed to possess high levels of awareness and knowledge in
respect to education service delivery in Mukono Municipality schools. By using this sampling
technique, the researcher therefore decided to handpick and include all of them in the sample
3.5.2. Simple random sampling
The simple random sampling technique was preferred on basis of its ability to provide an equal
and independent chance to all people or subjects to participate in the study and thereby
24
minimizing selection bias. Specifically, the random selection technique was used to select Head
teachers and Teachers. It was easy to use this technique as they were registered at their
respective schools. In particular, each member of that category was assigned a number and after
which one number at a go was selected at random
3.6 Data collection methods
Data was collected using both primary and secondary sources. In particular, questionnaire
surveys and interviews techniques applied to the primary sources while documentary review was
used under secondary sources as described in the next three subsections.
3.6.1 Questionnaire survey

The questionnaire survey was a data collection method where closed ended questionnaires were
predetermined according to the objectives of the study. The study applied the survey method to
obtain quantitative data from study participants. The data collection technique was used to
collect data over relatively large sample of respondents (the class teachers). This method enabled
providing confidentiality among the respondents (Mugenda & Mugenda, 2005). Moreover, it was
easy to use the questionnaires on the Head teachers and Teachers since they could easily read
and write. The questionnaire method also helped to reduce bias on the side of the researcher
(Creswell, 2011). Using surveys, a large group of respondents was covered within a short time.
The survey allowed the researcher to gain firsthand information and more experience over a
short period of time (Earl-Babbie, 2013).
3.6.2 Interviewing
Interview data collection technique was a conversation like between two or more people where
questions were put by the interviewer to elicit facts or statements from the interviewee.
Interviews were carried through by person-to-person verbal interaction in which one person was
interviewed at a time. The technique were used because it had the advantage of enabling probing
for more information, clarification and capturing facial expression of the interviewees (Basheka,
Barifaijo & Oonyu, 2010). In addition, they also gave an opportunity to the researcher to revisit
some of the issues that had been an over-sight in other instruments and yet they were considered
vital for the study. Interviews were personal interviews and were conducted on the Head
25
teachers, DEO and the DIO because they were expected to be the key informants who had a
better understanding of the subject matter.
3.6.3 Documentary review
Documentary review is a techniques that can be used to correct data, categorize and interpret it
from written documents including reports, personal papers, records or archives, communications
or legislation (Junker & Pennink, 2010). In the context of this study, secondary data was
obtained through the use of published and unpublished documents. In particular, the study
reviewed publications like Mukono Annual performance Reports and District Education Officers
Reports. According to Ragin (2011), secondary data can be helpful in the research design of
subsequent primary research and can provide a baseline with which the collected primary data
results can be compared to other methods. According to Somekh and Lewin (2005), documents
can be helpful in the research design of subsequent primary research and can provide a baseline
with which the collected primary data results can be compared to other methods.
3.7 Data collection instruments
The study instruments included self-administered questionnaires, interview guides and

documentary review checklist.
3.7.1 Self-administered questionnaire
A questionnaire is a written set of questions to which respondents record their answers, usually
within rather closely defined alternatives. The questionnaire was used on the basis that the
variables under study cannot be observed, for instance, respondents’ views, opinions, perceptions
and feelings. The questionnaire was used because the information had to be collected from a
large sample in a short period of time yet the respondents given the fact that the respondents can
read and write (Bill, 2011). In this study, a self-administered questionnaire was used to draw
information regarding the study. The researchers chose the questionnaire as an instrument
because the study was virtually descriptive and the tool was an easy method of data collection.
The questionnaire consisted of closed ended questions purely structured in nature whose
variables were measured on a 5-point Likert scale (5 strongly Agree, 4 Agree, 3 Not sure, 2
26
Disagree and 1 strongly Disagree). The 5-point Likert scale is the most appropriate way to
formulate the different questions for measuring different items from different variables. The
questionnaire was administered to the class teachers from the selected primary schools. A copy
of the questionnaire is attached marked appendix ii.
3.7.2 Interview guide
An interview guide is an oral administration questionnaire and it involves either one-on-one or

telephone questioning (Ragin, 2007). Interviews were used because they have the advantage of
ensuring probing for more information, clarification and capturing facial expression of the
interviewees (Amin, 2005). The responses were written down by the researcher. Interviews were
used because they have the advantage of ensuring probing for more information, clarification and
capturing facial expression of the interviewees (Amin, 2005). In addition, interviews give an
opportunity to the researcher to revisit some of the issues that may have an over sight when using
other instruments. These allowed probing and provided in depth data which could not be easily
obtained using questionnaires. The interview guide is in appendix IV.
3.7.3 Documentary review check list
The chief sources of documentary review checklist were broadly classified into two groups
namely, published sources and unpublished sources for example Mukono Annual Performance
Reports and District Education Officers Reports. The use of documentary sources was important
in relating the study and its findings with other published and sometimes unpublished
information. The information from secondary data was collected by visiting the libraries in
different institutions, internet for related data health financing and performance. A copy of the
documentary review checklist is appended in the list of appendices labeled appendix v.
3.8 Quality control
Data quality control techniques ensured that data collected is valid and reliable; the instruments
were first tested to ensure validity and reliability.
27
3.8.1 Validity of instruments
Validity means the degree to which results obtained from the analysis of the data represents the
actual phenomenon under study (Mugenda and Mugenda, 1999). Content validity according to
Amin (2005) is the degree to which the test actually measures the traits for which it was designed
and is measured by expert judgment. The validity of the instrument quantitatively was
established using the Content Validity Index (CVI). This involved the expert scoring of the
relevance of the questions in the instrument in relation to the study variables. The instruments
that yielded a CVI above 0.7 were within the accepted ranges. Amin (2005) noted that a CVI of
more than 0.7 implies that the tool is valid. Index (CVI) were computed using the formula as
presented in the proceeding writings.
C VI = X100
Where; n = Number of items rated as relevant.
N = Total number of items in the instrument
The validity results are presented in table 3.3 below
Table 3.2: Results of the Content Validity of Instruments

Variables Content Validity Number of valid Total Number of
Index items items
Conditional transfers 0.8 6 7
Local revenue 0.871 6 7
Unconditional transfers 0.85 3 4
Educational service 0.745 13 17
delivery
Source: Primary data (2019)
Table 3.3 above revealed validity results for the questionnaire as an instrument for conditional
transfers was 0.800, for local revenue was 0.871, for unconditional transfers was 0.850 and for
the dependent variable (educational service delivery) was 0.745.
28
3.8.2 Reliability of instruments
According to Sekaran (2013), reliability is consistency of measurement or the degree to which an

instrument measures the same ways each time it is used under the same condition with the same
subjects. The instrument validity was tested and assured through carrying out a pilot study.
Cronbach’s coefficient alpha (a) as recommended by Amin, (2005) was used to test the
reliability of the research instrument. The instrument is deemed reliable if Cronbach’s alpha of
0.7 and above is obtained. The reliability results are presented in the table below
Table 3.3: Results of the Cronbach Alpha reliability test for the questionnaire
Variables Content Validity Index Number of items

Conditional transfers 0.799 7
Local revenue 0.806 7
Unconditional transfers 0.867 4
Educational service delivery 0.799 17
Source: Primary data (2019)
Table 3.4 revealed validity results for the questionnaire as an instrument for conditional transfers
was 0.799, for local revenue was 0.806, for unconditional transfers was 0.867 and for the
dependent variable (educational service delivery) was 0.799.
3.9 Procedure of data collection

After the proposal hearing session and responding to the outstanding amendments, the researcher
obtained a letter of introduction from the relevant authorities at Uganda Management Institute
(UMI) which she used to introduce herself before the respondents. Maximum confidentiality was
guaranteed. Respondents were given time to respond to the request to allow the study, after
which the responses were picked the following day. No incentives were given to the participants
in the research. An area access visit was then undertaken in the field to locate the respondents
and acquaint herself with the geography of the area. Expert judgment was deployed to ascertain
validity of the data collection instruments and results confirm their validity. Similarly, a pilot test
was undertaken on 10 respondents from the study, to indicate that the data collection instruments
were consistent. The data collection exercise was then embarked on where questionnaires were
29
distributed to the respondents and interviews were scheduled with the key informants.
Documents were also be reviewed including police reports. After, the researcher collected
questionnaires and they were entered into SPSS with the help of a data analyst.
3.10 Data processing and analysis

Data was collected, coded and edited during and after the study to ensure completeness,
consistency, accuracy, and removal of errors and omissions. It also involved identifying patterns,
consistencies and relationships in the questionnaire and interview guide (Qualitative data). Data
analysis therefore involved qualitative and quantitative analysis methods.
3.10.1 Qualitative data analysis
Qualitative data collected from interviews and documentary review was sorted and grouped into
content and thematic analysis technique. Content analysis involved reading through the data set
to get a general sense of what was all about before coding the data and later processing it.
Content analysis included developing codes that represented what the data will all be about
(Creswell, 2009). While analyzing qualitative data, summaries were made on how different
themes emerged and related. Thematic analysis on the other hand involved organizing and
merging codes into categories or themes reflecting the bigger picture of the data. The codes and
themes emerged from the data being analyzed.
3.10.2 Quantitative data analysis

Quantitative data was analyzed using both descriptive and inferential statistics. The descriptive
analysis was done using measures of central tendencies in particular the mean and standard
deviation. Quantitative data collected was expressed in numeric terms for analysis using the
Statistical Package for Social Sciences (SPSS) Version (21) software. The researcher adopted the
Pearson correlation coefficient to test the effect of independent on the dependent variables. The
statistical program was used in the calculation of descriptive statistics, frequency percentages,
drawing of frequency tables and figures. This was well-suit for the quantitative description.
3.11 Measurement of variables

The study has independent and dependent variables. The categorical variables were measured
using the nominal scale, with numbers being assigned to each category only to identify similar
objects with in a category from elements in another category that were different. The researcher
30
used the ordinal measurement scale composed of discrete variables. A five-point Likert type
scale (5- Strongly agree (SA), 4-Agree (A), 3-Not-sure (NS), 2- Disagree (D) and 1-Strongly
disagree (SD) measurement of questions was used in the study. The choice of this measurement
is that each point on the scale carried a numerical score which was used to measure the
respondent’s attitude and it was the most frequently used summated scale in the study of social
attitude. According to Amin (2005), the Likert scale is able to measure perception, attitudes,
values and behaviors of individuals towards a given phenomenon. The background information
about respondents like age, gender, marital status, highest level of education and experience was
measured using the nominal scale, being discrete variables.
3.12 Ethical consideration
Ethical conduct states that it is the responsibility of the researcher to assess carefully the
possibility of harm to research participants, and to the extent that it is possible, the possibility of
harm should be minimized (Bryman& Bell, 2007). These codes address issues such as honesty,
objectivity, respect for intellectual property, social responsibility, confidentiality, non-
discrimination and many others
Honesty: There are several reasons why it is important to adhere to ethical norms in research.
First, norms promote the aims of research, such as knowledge, truth, and avoidance of error. For
example, prohibitions against fabricating, falsifying, or misrepresenting research data promote
the truth and avoid error. Second, since research often involves a great deal of cooperation and
coordination among many different people in different disciplines and institutions, ethical
standards promote the values that are essential to collaborative work, such as trust,
accountability, mutual respect, and fairness (Amin, 2005). To avoid plagiarism, works of
different authors were acknowledged whenever they are cited.
Informed Consent: The ethics framework is essential as it entails the voluntary informed consent
of the participants. This requires giving the participants adequate information about what the
study involved and an assurance that their consent to participate would be free and voluntary
rather than coerced. According to Sekaran(2003) participants informed consent was obtained
either through a letter or form that clearly specifies what the research involves, includes clearly
31
laid down procedures the participants can expect to follow and explain the ways in which their
confidentiality was assured. In this case, a letter was obtained for this purpose. It was also
imperative to describe possible risks and benefits of the research (Sekaran, 2003). The signing of
the voluntary informed consent by each individual participant was confirmation that the
respondents are not coerced to participate in the study but are doing so willingly. The researcher
explained to the participants that an audio tape was going to be used to record interviews. The
researcher made the respondents aware of their right to opt out of the study if they so wish and
that recording would only be done with their approval. In all the interviews, the participants
consented to the use of audio tape. Some respondents required further verbal assurance that the
tapes were under no circumstances going to be handed over to their supervisors.
32
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
Mukono District Local Government, Uganda. This chapter presents and analyses findings before
drawing conclusions and recommendations. The findings are presented according to the
objectives of the study. Firstly, the chapter presents the response rate, followed by the
background information of the respondents and the empirical findings are presented last
4.2 Response rate

Response rate in this study refers to the percentage of actual respondents observes as a fraction
of those who were targeted by the study (Amin, 2005). The response rate was computed and
presented in table 4.1 below
Table 4.4: Response rate

Data collection Method Target Response Actual response Response rate
Interview 32 31 98.6
Questionnaire 240 236 94.1
Total 272 267 98.5
Source Primary Data (2019)
Table 4.1 above indicates that out of the 32 respondents that were scheduled for interviews in the
study, 31 were actually engaged in representing a response rate of 98.6%. Relatedly, out of the
240 participants targeted for the questionnaire survey, 267 responded implying a response rate of
94.1%. Since a total of 267 out of the targeted 272 respondents participated in the study, the
overall response rate for study therefore was 98.5%. The high response rate could have been due
to the study phenomena that was topical and perhaps found appealing to all population
categories. This study response rate was deemed well enough since it was over and above the
70% recommended by Amin (2005).
33
4.3 Findings on background characteristics
This section presents findings on demographics of the respondents, namely; gender, age,
education, and marital status.
4.3.1 Gender characteristics of the respondents

The gender characteristics of respondents were investigated in this study and findings are
presented in table 4.2.
Table 4.5: Findings on gender characteristics of the Respondents
Item Frequency Percent
Male 162 60.7
Female 105 39.3
Total 267 100
Source: Primary Data (2019) N=267
Table 4.2 shows that the majority of the respondents were males 162 (60.7%) while the females
were 105 (39.3%). The finding could have been so given a fact that naturally in Uganda men
tend to dominate most public institutions. The implication from this finding was that as far as
gender was concerned, the study findings were representative since both males and females
provided their views in the study.
4.3.2 Age of the respondents
The study looked at age distribution of the respondents by using frequency distribution. The
results obtained on the item are presented in table 4.3.
Table 4.6: Findings on age structure of the Respondents

Age Structure Frequency Percentage (%)
21-25 19 7
26-30 62 23.1
31-35 54 20.9
34
36 and above 132 49
Total 267 100
Findings in Table 4.3 above shows that the majority of participants 132 (49%) fell in the age
category 36 and above. Those were followed by participants in the 26-30 age bracket constituting
23.1%. Those between 31-35 years of age represented 20.9% and lastly were the respondents in
the age bracket 21-25years at 7%. The findings imply that since a big majority of respondents
(69.9%) were above 30 years of age, the study was informed by mature participants. Such people
could be relied on to understand and appreciate the study interests
4.3.3 Findings on Respondents Academic Level
Findings on the distribution of participants by academic level are presented in table 4.4.
Table 4.7: Distribution of respondents by highest level of education

Item Frequency Percent
Masters 1 0.37
Bachelors 13 4.9
Diploma 142 53.2
Certificate 111 41.6
Total 267 100.0
Table 4.4 shows that the majority of the respondents 53.2% had attained a diploma, followed by
certificates (41.6 %), 4.9 had achieved a Bachelor’s degree while .37 had a Master’s degree. It
can be deduced from the findings that all the respondents had attained a certain level of
education to understand how fiscal decentralisation can affect education service delivery. All the
respondents were better positioned to understand the study interests.
4.4 Empirical results on fiscal decentralisation and education service delivery

35
This section presents the empirical findings of the study according to the objectives. The
empirical findings are analyzed using descriptive statistics, qualitative analysis and then
hypotheses are tested for the respective findings. For all descriptive findings in this chapter,
various statements were provided to each respondent for him/her select an option that best
reflects the extent to which he/she agreed with each statement. The responses were measured on
a five point Likert scale (5= Strongly Agreed, 4= Agree, 3= Not Sure, 2= Disagree, 1= Strongly
Disagree).
Structurally, the chapter first presents descriptive findings on the Education service delivery in
primary schools in Mukono Municipality and this is followed by findings according to the three
objectives
4.4.1 Findings on education service delivery in Mukono Municipality
The study problem was education service delivery in Mukono Municipality, Uganda. The
researcher therefore collected and presents results on the reality of education service delivery in
Mukono Municipality in table 4.5 below
Table 4.8: Findings on Education service delivery
Items SD D NS A SA Mean Std.
Dev
There is an improvement in 0.8% 1.7% 4.7% 29.7% 63.1%(149) 4.52 .740

number and quality of teachers (11) (70)
(2) (4)
Feedback on performance is 0.0% 0.8% 3.4% 29.2% 66.5% 4.61 .597

provided on a regular basis by (69)
(00) (2) (8) (157)
management
There is quality teaching and 0.0% 0.0% 1.7% 18.2% 80.1% 4.78 .451
management of teaching in the (4) (43)
(00) (00) (189)
school
Teachers are zealous to finish 0.0% 0.4% 2.1% 24.6% 72.9% 4.69 .521
teaching load in time
(00) (1) (5) (58) (172)
36
The public is satisfied with the 0.0% 0.8% 2.5% 28.4% 68.2% 4.63 .577
services they receive from
(00) (2) (6) (67) (161)
school
There is timely accomplishment 0.0% 0.0% 1.3% 28.8% 69.5% 4.89 .324
of tasks by all teachers in school
(00) (00) (3) (68) (164)
There is minimization of 0.0% 0.4% 1.3% 32.2% 66.1% 4.63 .531

resources used in the schools
(00) (1) (3) (76) (156)
There is regular attendance to 0.0% 0.4% 0.8% 25% 73.7% 4.72 .494
duty by all teaching staff in the
(00) (1) (2) (59) (174)
school
Feedback on performance is 2.1% 1.7% 3.4% 38.6% 54.2% 4.41 .817

provided on a regular basis by
(5) (4) (8) (91) (128)
management
The completion rate of lower 0.0% 0.0% 0.8% 41.1% 58.1% 4.57 .512
secondary by students is high
(00) (00) (2) (97) (137)
The number of staff in schools is 0.0 0.8% 3.4% 41.9% 53.8% 4.48 .602
adequate
(00) (2) (8) (99) (127)
The staff is well qualified in 0.4% 0.0% 2.1% 44.5% 53.0% 4.49 .587
most Mukono schools
(1) (00) (5) (105) (125)
The staff does its duties 0.0% 0.0% 3.4% 19.5% 77.1% 4.73 .512
professionally.
The staff has the required (00) (00) (8) (46) (182)
experience.
37
Schoolteachers create time for 4.2% 3.8% 1.3% 32.6% 58.1% 4.36 .999
their pupils.
Primary Data (2019) N=236
According to table 4.5 above, feedback on performance is provided on a regular basis by

management, a mean of 4.61 indicated that the majority were in agreement with the statement
and the low standard deviation of .597 indicated that there was limited variation in responses.
In response to the item that stated that there is quality teaching and management of teaching in
the school, a mean of 4.78 indicated that the majority were in agreement with the statement and
the low standard deviation of .451 indicated that there was limited variation in responses.
Relatedly, it was revealed that teachers are zealous to finish teaching load in time, a mean of 4.69
indicated that the majority were in agreement with the statement and the low standard deviation
of .521 indicated that there was limited variation in responses.
Whether the public is satisfied with the services they receive from school, the mean = 4.63
indicated the majority of the respondents agreed with the item and the low standard deviation
Whether there is timely accomplishment of tasks by all teachers in school, the mean = 4.89
indicated the majority were in agreement with the statement, the low standard deviation of .324
indicated that there was limited variation in responses.
Whether there is minimization of resources used in the schools, the mean = 4.63 indicated that
the majority were in agreement with the statement and the low standard deviation of .531
As to whether there is regular attendance to duty by all teaching staff in the school, the mean =
4.72 indicated the majority of the respondents agreed with the item and the low standard
deviation of 0.494 indicated that there was limited variation in responses.
Whether feedback on performance is provided on a regular basis by management, the mean =

4.41 indicated the majority were in agreement with the statement, the low standard deviation
38
Whether the completion rate of lower secondary by students is high, the mean = 4.57 indicated
that the majority were in agreement with the statement and the low standard deviation of .521
As to whether the number of staff in schools is adequate, the mean = 4.48 indicated the majority
of the respondents agreed with the item and the low standard deviation of 0.602 indicated that
there was limited variation in responses.
Relatedly, it was revealed that the staff is well qualified in most Mukono schools, a mean of 4.49
Whether the staff does its duties professionally, the mean = 4.73 indicated the majority of the
respondents agreed with the item and the low standard deviation of .512 indicated that there was
limited variation in responses. Whether the staff has the required experience, the mean = 4.73
indicated the majority were in agreement with the statement, the low standard deviation of .512
4.4.2: To establish the effect of Conditional transfers on education service delivery
The first objective was to establish the effect of conditional transfers on education service
delivery in selected primary schools of Mukono Municipality, Uganda. In an attempt to generate
views on whether conditional transfers have an effect on education service delivery, study
participants were requested to rate their views over a number of statements. These statements
were rated on a five-point Likert scale where code 1 = Strongly Disagree, 2 = Disagree, 3 = Not
sure, 4 = Agree and 5 = Strongly Agree. The elicited responses are presented in table 8.
39
Table 4.9: Findings on conditional transfers and education service delivery
Dev
Conditional grants come in form 17.4%(41) 17.4% 21.2% 15.7% 28.4% 3.20 1.45
of infrastructural grants to build
(41) (50) (37) (67)
class, teachers houses and toilets
Conditional grants are used to 0.4%(1) 1.3% 3.0% 53.8% 41.5% 4.34 .644
fund educational recreational
(2) (7) (127) (98)
programs in schools
Conditional grants emphasize 0.4%(2) 0.8% 7.2% 54.2% 37.3% 4.25 .684
priority areas for education
(1) (17) (128) (88)
development
There is a conditional grant for 0.4%(1) 4.2% 00% 48.3% 47% 4.41 .595
pupils’ meals
(10) (00) (114) (111)
Conditional grants only cater for 0.4%(1) 2.1% 00% 20.3% 77.1% 4.74 .510
teachers’ accommodation
(5) (00) (48) (182)
Source Primary Data (2019) N=236
Reflecting on whether conditional grants come in form of infrastructural grants to build class,
table 4.5 shows that teachers houses and toilets, the mean = 3.20 indicated agreement with the
item, the high standard deviation of 1.45 indicated that there was variation in responses. This
implied that grants sometimes come in form of infrastructure grants for example classroom block
construction. For example, grants are the first quarter money, school grant facilities for teacher
houses that most schools in the Municipality receive. Whether conditional grants are used to fund
educational recreational programs in schools, the mean = 4.34 indicated agreement and the low
standard deviation of .644 indicated that there was limited variation in responses.
Relatedly, it was revealed that there is a conditional grant for pupils’ meals, a mean of 4.41
40
of .595 indicated that there was limited variation in responses. This implied that some grants are
dispatched to cater for pupils’ meals for example money is sent to cater for food of both students
and teachers. Some other money is used for external examinations.
In response to the item that stated that conditional grants only cater for teachers’ accommodation,
a mean of 4.74 indicated that the majority were in agreement with the statement and the low
standard deviation of .510 indicated that there was limited variation in responses. This implied
that conditional grants not only cater for teachers’ accommodation but can be used for other
issues like financing recreational activities.
When asked about conditional grants R01 had the following to put across:
“We receive condition grants from central government and this is with reference
to the Local Government Act for example money for school inspections, grant for
new buildings.
This implies that the district received conditional grants from the government and these normally
come inform of building and infrastructure grants aimed at ensuring that government aided
primary schools do get access to the required physical infrastructure to guarantee effective
education delivery.
In corroboration, data from the interview revealed a similar idea. R03 noted that;
“Grants to support co-curricular activities like supports and games from local
government are received. Such recreational activities help in building future
talent of students involved in them, some get income in the during the holidays
those involved in music dance and drama are today’s singers for example Sanyu
Cindy a local musician like Lilian Mbabazi started singing way from primary”.
This implied that there are education grants received are always used for different purposes and
not limited to buildings. Depending on the intended use of the grants, the findings revealed that
as part of the efforts to improve service delivery, learners’ welfare and the physical well-being
are put into perspective. Thus, some of the grants received are used for talent building and other
related functions.
41
4.4.2.1 Testing hypothesis one
Hypothesis one stated that conditional transfers have no significant effect on education service
delivery in Mukono Municipal Council primary schools. The hypothesis was tested using
Pearson correlation coefficient and results of the hypothesis are presented in table 4.6.
Table 4.10: Correlation matrix for conditional transfers and education service delivery
Conditional Education service
transfers delivery
Conditional Pearson 1 .656**

transfers Correlation
Sig. (2-tailed) .000
N 236 236
Education service Pearson .656** 1

delivery Correlation
N 236 236
**. Correlation is significant at the 0.01 level (2-tailed).
The results in table 4.6 above show that the correlation coefficient is 0.656(**) between
conditional transfers and education service delivery. This implies that there is a strong positive
relationship between conditional transfers and education service delivery which is statistically
significant at 0.000. Therefore, the result can be interpreted that the better the conditional
transfers, the better the education service delivery in Mukono Municipal council. An
improvement on conditional transfers will lead to a significant improvement on education service
delivery in Mukono municipal council. Therefore, the hypothesis that conditional transfers have
no significant effect on education service delivery in Local Governments in Uganda is rejected
and substituted with an Alternative one.
42
4.4.3 To establish the effect of local revenue on education service delivery
The second objective was to establish the effect of local revenue on education service delivery in
selected primary schools in Mukono Municipality, Uganda. The items on local revenue were
structured basing on the objectives of the study. Items were measured on a five-point Likert scale
where code 1 = Strongly Disagree, 2 = Disagree, 3 = Not sure, 4 = Agree and 5 = Strongly Agree
and analyzed basing items which are statistically tabulated and presented in the Table 4.7 below
with the frequencies and percentages according to the responses collected.
Table 4.11: Summary statistics on Local revenue and education service delivery
Dev
Budgets are drawn basing on the 00% 00% 11% 139% 86% 4.31 .557
revenue collected
Budgets are drawn basing on tuition 1.3% 5.5% 13.1 3.98 3.98 4.29 2.81
collected
(3) (13) (31) (94) (94)
Expected local revenue comes in 2.5% 5.9% 00.0% 44.9% 46.2% 4.52 2.67
time to be included in budgeting
(6) (14) (00) (106) (109)
District expenditure on local revenue 0.8% 2.5% .8% 20.3% 75.4% 4.66 .703
collection is greater than the income
(2) (6) (2) (48) (178)
The district has a variety of local 9.3% 13.1% 8.5% 14.8% 54.2% 3.91 1.41
revenue sources used to finance
(22) (31) (20) (35) (128)
schools
The revenue got from local 16.6% 21.2% 4.7% 12.3% 43.2% 3.04 1.63
collections finances a small portion
(44) (50) (11) (29) (102)
of schools
43
Whether the budgets are drawn basing on the revenue collected, table 4.7 indicated that the mean
= 4.31 indicated the majority were in agreement with the statement, the low standard deviation of
.557 indicated that there was variation in responses. This implied that budgets are drawn basing
on the revenue collected. Mukono operates a balanced budget for example following to prove if
what was planned is what is being implemented, those involved include contractors, Municipal
Engineers who play the supervisory role and council of technical planning who do monitoring
and evaluation for accountability purposes.
Whether budgets are drawn basing on tuition collected, the mean = 4.2 indicated that the
majority were in agreement with the statement and the high standard deviation of 2.81 indicated
that there was variation in responses. Although budgets may be drawn according to the needs but
normally stress priority areas of the district that is education etc.
As to whether expected local revenue comes in time to be included in budgeting, the mean =
4.52 indicated the majority of the respondents agreed with the item and the high standard
deviation of 2.67 indicated that there was variation in responses. This implied that local revenue
may be collected on time but it is always inadequate to finance the budget and so the district has
to look for other means of financing the current budget.
In response to the item that stated that District expenditure on local revenue collection is greater
than the income, a mean of 4.66 indicated that the majority were in agreement with the statement
and the low standard deviation of .730 indicated that there was limited variation in responses.
This implied that the district expenditure on local revenue collection is greater than the income.
The revenue collected is always small yet the expenditure is big. Mukono focuses on a few areas
for its revenue like market dues, fees, rent rates and hires.
It was revealed that the district has a variety of local revenue sources used to finance schools, a
mean of 3.91 indicated that the majority were in agreement with the statement and the low
standard deviation of 1.41 indicated that there was variation in responses. This implied that the
district has a variety of local revenue sources used to finance schools. The Mukono District
Annual Report (2017) reveals that the district has a variety of local revenue sources used to
finance schools like fees, dues and rates.
44
Whether the revenue got from local collections finances a small portion of schools, the mean =
3.04 indicated the majority of the respondents agreed with the item and the high standard
deviation of 1.63 indicated that there was variation in responses.
In relation to local revenue, a R02 had the following to say:
“There are local revenues collected from schools, and these are used to build for
schools’ new structures if needed for example toilets”.
This implied that some of the local revenue collected by the Municipality is used to put up
buildings and classroom blocks for primary schools in the Municipality. Relatedly R01 pointed
out that
“Local revenue involves local government drawing budgets for example recently
Seeta C/U Primary School launched its annual budget. Through renovation of
classrooms for a health environment to the students, buying chalks to be used by
teacher in teaching as a service, buying supports material”.
This implied that many schools are benefitting from the money locally generated from the
revenue got from Mukono like taxes collected locally within the district and these have been
used to put up buildings in primary schools within the district.
4.4.3.1 Testing Hypothesis Two
Hypothesis two stated that local revenue had no significant effect on education service delivery
in Local Governments in Uganda. The hypothesis was tested using Pearson correlation
coefficient and the results of the hypothesis are given in Table 4.8
45
Table 4.12: Correlation matrix for local revenue and education service delivery
Correlations Local revenue Education service
delivery
Local revenue Pearson 1 .333**

Correlation
N 236 236

N 236 236
The results in table 4.8 above show that the correlation coefficient is 0.333(**) between Local
revenue and education service delivery. This implies that there is a weak positive relationship
between conditional transfers and education service delivery which is statistically significant at
0.000. Therefore, the result can be interpreted that the better the local revenue, the better the
education service delivery in Mukono District. An improvement on local revenue will lead to a
significant improvement on education service delivery in Mukono District. Therefore, the
hypothesis that local revenue has no significant effect on education service delivery in Local
Governments in Uganda is rejected and substituted with an Alternative one.
4.4.4 Objective Three: To assess the effect of unconditional transfers on education service
delivery
The last objective assessed the effect of unconditional transfers on education service delivery in
selected primary schools in Mukono Municipality, Uganda. The items on unconditional transfers
were structured basing on the objectives of the study. Items were measured on a five-point Likert
scale where code 1 = Strongly Disagree, 2 = Disagree, 3 = Not sure, 4 = Agree and 5 = Strongly
46
Agree and analysed basing four questions which are statistically tabulated and presented in the
Table 4.9 below with the frequencies and percentages according to the responses collected.
Table 4.13: Findings on unconditional transfers and education service delivery

Dev
The unconditional transfers are 1.7% 1.3% 5.1% 38.6% 53% 4.41 .796
untimely for education services (12) (91)
(4) (3) (125)
The government unconditional grants 1.3% 0.8% 3.4% 39% 55.5% 4.46 .722
are too small to help
(3) (2) (8) (92) (131)
Because of the desire to deliver better 1.3% 2.1% 2.5% 41.1% 53% 4.42 .759
education services, the schools ask for
(3) (5) (6) (97) (125)
an increase in the unconditional
transfers
Most of the money to schools’ 4.2% 4.7% 5.5% 47.5% 38.1% 4.10 .998
services comes from unconditional
(10) (11) (13) (112) (90)
transfers
Relatedly in according to table 4.9, it was revealed that the unconditional transfers are untimely
for education services, a mean of 4.41 indicated that the majority were in agreement with the
statement and the low standard deviation of .796 indicated that there was limited variation in
responses. The implied that the unconditional grants always come late most especially after the
first quarter and they are released in phases. This in most cases affects projects completion and
some contracts are never completed as scheduled.
In response to the item that stated that the government unconditional grants are too small to help,
a mean of 4.66 indicated that the majority were in agreement with the statement and the low
standard deviation of .722 indicated that there was limited variation in responses. This implied
47
that Mukono has a number of projects that cannot be funded based on unconditional grants
implying that Mukono has to look for other funding sources besides the unconditional grants
It was revealed that because of the desire to deliver better education services, the schools ask for
an increase in the unconditional transfers, a mean of 4.42 indicated that the majority were in
agreement with the statement and the low standard deviation of .759 indicated that there was
limited variation in responses. This implied that most local governments put the government on
tip toe to increase the unconditional transfers yet the government has been reluctant to increase
these grants over the years as revealed in the Mukono District Annual Performance Report
(2016).
Whether most of the money to schools’ services comes from unconditional transfers, the mean =
4.10 indicated the majority of the respondents agreed with the item and the low standard
deviation of .998 indicated that there was limited variation in responses. This implies that most
of the money to schools’ services comes from unconditional transfers. However, the
documentary evidence, Mukono District Education Report (2017) revealed that the money comes
from various sources not only unconditional grants and it further names donation or private
education financing as another source of financing
The Inspector of School pointed out those yes unconditional transfers from the central
government is money to cater for infrastructure for example construction of staff quarters,
central government transfers those grants to local government where such grants are delivered
direct to specific schools.
This implies that government releases money that is used to support infrastructural development
in schools. The Mukono District Education Report (2017) reveals that more than 120 classrooms
were constructed by government in various primary schools within the district.
4.4.4.1 Hypothesis Testing Three: Unconditional transfers no significant effect on education

service delivery
Hypothesis three stated that unconditional transfers no significant effect on education service
delivery in Local Governments in Uganda. The hypothesis was tested using Pearson correlation
coefficient results of the hypothesis are given Table 4.10.
48
Table 4.14: Correlation matrix for unconditional transfers and education service delivery
Correlations Unconditional Education service

transfers delivery
Unconditional Pearson 1 .557**
transfers Correlation
N 236 236
N 236 236
The results in table 4.10show that the correlation coefficient is 0.557(**) and its significance
level 0.000. Therefore, according to the results unconditional transfers have a significant positive
effect on educational service delivery in Mukono Municipal council. The effect of unconditional
transfers on educational service delivery in Mukono Municipal council is statistically significant
since the P value is less than the significance level figure (p=0.000<0.05). Therefore, the result
can be interpreted that the better the unconditional transfers, the better the education service
delivery in Mukono District. An improvement on unconditional transfers will lead to a
significant improvement on education service delivery in Mukono Municipal council. Therefore,
the hypothesis that unconditional transfers have no significant effect on education service
delivery in the selected schools in Mukono Municipal council in Uganda is rejected and
substituted with an alternative one.
This chapter focused on presenting the findings, interpretation and analysis, the next chapter
focuses on the summary of findings, discussion of the findings, conclusions, recommendations
and areas for further research. The researcher now turns to chapter five to present the summary
of findings, discussion of the findings, conclusions and recommendations.
49
CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
Mukono District Local Government, Uganda. This chapter presents a summary of findings,
discussion, conclusions and recommendations based on the study objectives. The chapter also
presents areas for further study
5.1.1 Summary of findings
50
The summary of the major findings are presented according to the study objectives as stated in
chapter one.
5.2. Conditional transfers and education service delivery
The results showed that conditional transfers had a significant positive effect on educational
service delivery in Mukono District. The effect of conditional transfers on educational service
delivery in Mukono District was statistically significant since the P value was less than the
significance level figure. Therefore, the result can be interpreted that the better the conditional
transfers, the better the education service delivery in Mukono Municipal council. An
improvement on unconditional transfers will lead to a significant improvement on education
service delivery in Mukono Municipal council.
5.2.2 Local revenue and education service delivery
The results revealed that local revenue had a significant positive effect on educational service
delivery in Mukono Municipal council. The effect of local revenue on educational service
delivery in Mukono Municipal council was statistically significant since the P value was less
than the significance level figure (p=0.000<0.05). Therefore, the result can be interpreted that the
better the local revenue, the better the education service delivery in Mukono Municipal council.
An improvement on local revenue will lead to a significant improvement on education service
delivery in Mukono Municipal council.
The study results showed that unconditional transfers had a significant positive effect on
educational service delivery in Mukono District. The effect of unconditional transfers on
educational service delivery in Mukono District was statistically significant since the P value
was less than the significance level figure (p=0.000<0.05). Therefore, the result can be
interpreted that the better the unconditional transfers, the better the education service delivery in
Mukono District. An improvement on unconditional transfers will lead to a significant
improvement on education service delivery in Mukono District.
5.3 Discussion of findings
The findings are discussed on the basis of the study objectives as laid down in chapter one
51
The study results indicated that conditional transfers had a significant positive effect on
education service delivery in Mukono district primary schools. Findings revealed that conditional
grant consist of moneys given to local governments to finance programs agreed upon between
the government and the local governments; and shall be expended only for the purposes for
which it was made and in accordance with the conditions agreed upon. It was established that
central government transfers are objects of inaccurate budget estimates, arbitrary budget cuts,
and non-timely fund disbursements. These create substantial budget unpredictability that
destabilize the smooth running of the municipality’s finances and make budgeting a nightmare.
Meyers (2016) strongly criticized the conditional grants (earmarked funds), off-budget funding
and unpredictability of central government transfers as major weaknesses in public sector
budgeting. He argues that conditional grants undermine the effectiveness of the budgets and
service delivery. The reason he gives is that users of conditional grants have little or no incentive
to economize or achieve value for money. Interestingly, MoLG (2013) acknowledges that in
Uganda the conditional grants guidelines and policies by-pass LG structures. The local
governments have very little involvement in the planning of the services delivered (such as
roads, health care and primary education).
Conditional cash transfer (CCT) programs aim to reduce improve infrastructural services like
schools. The government (or a charity) only transfers the money to persons who meet certain
criteria. These criteria may include enrolling children into public schools, getting regular check-
ups at the doctor's office, receiving vaccinations, or the like. Despite the eloquence,
administrative efficiency and effectiveness of some conditional grants have remained dreams in
most administrative systems.
Findings revealed that besides salary, primary school teachers earn nothing from conditional
grants. The findings are consistent with Lewin (2005) cited that when teachers’ salaries fail to
keep pace with the cost of living, they undergo a reduction in real income, their morale suffers
and the able ones shift to better paying jobs thus pulling down the quality of instruction. Malesky
(2015) looked at this scenario and affirmed that where teachers are disillusioned and frustrated
about conditions of service, the quality of education is likely to deteriorate even with substantial
input of equipment and material. However, they conclude that if a teaching force is reasonably
52
paid, and well-motivated, they can achieve much for the quality of education even against great
odds.
Findings revealed that the issue of conditional grant is still a controversial one in Uganda. The
findings are consistent with Munyanyo (2018) who asserts that because of the inappropriate and
inflexible conditional grants, service delivery at the local governments is affected.
5.3.2 Local revenue and Education service delivery

The study findings revealed that local revenue had a significant positive effect on education
service delivery in Mukono municipality schools. This finding is in line with Munyanyo (2018)
who submitted that local revenue, conditional transfers and unconditional transfers significantly
impact service delivery in Local governments in Uganda. The study noted that although on
average local revenue contributes minimally to the general budget; it does provide more
discretion to Mukono Municipal government to determine the local service required. This is
unlike the prominence of central government transfers that pose significant challenge in
financing local priorities. This is in line with Musinguzi (2018) who argues that central
government transfers are a key source of local government revenue in developing nations but rob
local governments of autonomy intended by fiscal decentralization.
The biggest undoing is that the district is given insufficient funds that cannot enable the construct
new classroom blocks. In relation to this, Onyacha-Olaa (2018) notes that participatory
budgeting is the way to go, deficiencies in budgets are always existent but working within the
available resources can be a better solution. The findings are also in line with the institution
theory that emphasizes participation for purposes of efficient operation.
It was observed that Mukono as a district has failed to find adequate financial resources to
develop and maintain schools. The findings are in line with Osborne (2018) who notes that
adequate financing to infrastructural development should be a top priority in East Africa. It was
observed that the challenge of urban mobility in Uganda is closely linked to lack of proper
planning by both the central government and local authorities”. Scott under the institutional
theory observed that institutions should be adequately financed for purposes of effective and
efficient operations.
53
Findings revealed that the local revenue collected is inadequate to fund the services in the district
like education services. Raimo (2011) argues that local revenue does not enhances service
delivery. This view point is consistent and supported by shields and shields (2008) who argues
that the act of transfers increases “subordinates trust, sense of control, and involvement with the
organization, which then jointly causes less resistance to change and more acceptance of, and
commitment to, the budget decision.”
Mukono District relies on very few volatile sources of revenue that are difficult to manage and
collect. The five major sources of own revenue are: bus and taxi parks, property rates, market
dues and licenses and fees. The collection efficiency of these volatile revenues is very low and
the yield is poor.
It was observed that actual recurrent expenditure performance is always below the estimated
budget. This is evidence of either inaccurate and overstated expenditure budgets or a perennial
inability of the District Council to collect all anticipated revenues. The annual short falls posted
for both recurrent and capital development budgets are usually in the range of 15-40% of the
total planned revenue items. On average, only 75% of the recurrent budget is realized and this
has wide implications for service delivery. The poor revenue performance affects the inter
relationship between the budget practices which is in line with Redan (2018), who noted that the
system theory as expounded by Von Ludwig Bertalanffy in 1940s emphasizes that for a system
to work effectively all parts must be inter linked.
5.3.3 Unconditional grants and education service delivery

The findings revealed that unconditional grants had a significant effect on education service
delivery in Mukono Municipality schools. The finding echoes Robyn (2011) to that effect that
unconditional transfers provide a significant factor in service delivery. This could probably
partly explain the effectiveness of education services in primary schools of Mukono Municipal
Council.
Findings revealed that in Mukono District services are mainly financed using money from
central government transfers. This is in line with Rot (2019) who has observed that central
government transfers are the basis for effective service delivery and accountability.
54
Recent literature also asserts that unconditional transfers are very important in the budgeting
process. Prior studies on budgeting and participation found that a participative budgeting
approach had an influence on process and the performance (Yu-Hung-Hung, 2018). This is in
line with the Systems Theory which states that a subject involvement in a pursuit of a goal can
have an effect on goal attainment.
For budgets to be effective, they must be linked to grants got. The majority of the respondents
agreed that there was linkage between the Mukono District budgets and plans. This explains the
substantial improvements in the quality of services earlier discussed. Mukono District tries to see
to it that the planned revenue is well spent. This is in line with Scholz and Mai (2012) who
suggests that for the public sector budgeting system to be effective, it should possess qualities
such as accountability and transparency, timeliness and responsiveness comprehensiveness
honesty and others. This is also consistent with the Systems Theory that posits that business
organizations must consider the rights of the community at large, not merely those of investors.
If the corporations do not appear to operate within the bounds of the behavior considered
appropriate by the community, then the community will act to remove the organization's right to
continue its operations. When an actual and potential disparity exist between the business and
social value systems, this will lead to threats to organizational legitimacy in the form of legal,
economic, and other sanctions. Ssewaya (2013) also argue that the legitimacy of an organization
is constructed and maintained through symbolic action, which forms part of the organization's
public image.
5.4 Conclusions
Study conclusions were drawn from the discussion of findings above and they include;-
Conditional transfers were found to be key sources of revenue to Mukono District Local
Government for financing education service delivery. Although they are largely insufficient and
sometimes conditional grants may delay they are the major source of funds in local governments
of Uganda. The study concluded therefore, that conditional grants have a significant effect on
education service delivery in Mukono District.
55
Local governments like Mukono fund a small but critical part of its budget relying on local
revenue sources like property tax, licenses market dues, parking fees and rent. Property rates are
the highest revenue source followed by Bus/Tax Park. Although local revenue was found to on
decreasing trend since the financial year 2003/2004 when graduated tax was scrapped in Uganda,
it is still provides more autonomy and discretion to local governments. The study therefore
concluded that local revenue has a significant effect on the delivery of education service delivery
in Mukono District.
Central government transfers are given with a purpose for example the government normally
sends conditional grants for specific purposes and unconditional are sent without any conditions
attached. The funds are utilized as planned but less in amounts estimated and actual released by
central government transfers at the various levels of government. The expenditures are guided by
the work plans and policies in place. Therefore, Mukono District has used the grants to bring
piped water to schools, buying cleaning machines for schools. The study therefore concluded
that unconditional grant significantly and positively affect education service delivery in Mukono
district.
5.5 Recommendations
Based on the conclusions above, the following recommendations were made objective by
objective

The system of central government transfers should be transparent in terms of citizens’
empowerment and openness. Central government should lessen information asymmetries
between governments and citizens. First, local governments must disclose information that is
“actionable” to citizens, that is, information that can be used to hold governments to account.
Grants should be timely (grants should be sent to local government at the beginning of the
financial year for it to fulfill its role) and they should be distributed according to objective
criteria after dialogue with the districts, town managers and councilors. The time between the
receipt of the transfer and serving its purpose should be limited.
56
Improve on tax administration in Mukono municipality in order to strengthen revenue collection
and generate enough local revenue. First and foremost, a trustworthy and accountable local
government must be in place. To increase revenue collection and improve service delivery,
accountable local governments ones that understand their main task as delivering good services
in a customer-oriented manner to their citizenry need to be in place.
Local governments should devise new revenue sources like User charges/ fees including market
dues and parking fees, followed by business licenses, Local Government Hotel Tax and local
service tax respectively.
Unconditional transfers should be released on time and in adequate amounts so as to plan and
implement local government activities.
Central government should increase on unconditional transfer to local governments and also
empower them by providing autonomy to spend money based on the needs of the local
government.
5.6 Limitation of the study
First, the nature of the study (fiscal decentralization and service delivery) made it a bit hard to
easily access written documents and interact with respondents with ease. There were fears that
the researcher had hidden motives to find out how effective the government funds were being
utilized and report back to the central government. This was overcome by getting an introductory
letter from Uganda Management Institute to explain the purpose of the study.
The research study took long to conduct particular interviews, which delayed the study. This was
due to the fact that some respondents were not in office at the time of data collection. The
researcher made appointments suiting the respondents’ schedules and finally got the required
data
5.7 Areas for further research
This study only covered Mukono out of the 136 local governments in Uganda. To effectively
understand the subject matter at a national level, there is need to conduct a similar study in other
Districts in Uganda. More so, other than looking at service delivery in the education sector,
57
research should be carried out to ascertain how fiscal decentralization affects service delivery in
other sectors such as health service and other development arms of the government.
58
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65
APPENDIX I: INFORMED CONSENT FORM
I am Catherine Asiimwe, a master student at Uganda Management Institute (UMI). I am carrying

our research entitled “Fiscal decentralization and education service delivery in Mukono
District.” As part of the requirements before conducting interview with you, you are meant to
sign the consent form to show that you have been told the intention of this research as academic
and that your participation is voluntary without any financial or any kind of payments. The
information given during the interaction shall be used for the academic purposes only.
In have read the information herewith; and I have got an opportunity to ask more question about
this study. I am consenting voluntarily to participate in this study.
This is to confirm that the participant has been given enough opportunity to ask questions about
the study. All questions asked have been answered to the best of my knowledge.
I confirm that the participant has not been coerced to give consent, and has been informed the
voluntary nature to withdraw from the interview at any time of his/her wish
Name of the researcher
Asiimwe Catherine: ……………………………………...
Signature: …………………………………. Date: ………………………….
i
APPENDIX II: QUESTIONNAIRE FOR TEACHERS
Please tick the most appropriate option

Age 11 — 15 16-20 21 - 25 26 - 30 31 and above
Sex Male Female
Marital status Married Single Widowed Divorced
Education Masters Bachelor Diploma Certificate
Instructions from question 1: Tick the number that best indicates your opinion
Scale 5 4 3 2 1
Strongly Agree Agree Not sure Disagree Strongly disagree
SECTION B: CONDITIONAL TRANSFERS

5 4 3 2 1
Conditional grants come in form of infrastructural grants to build

1.
class, teachers houses and toilets
Conditional grants are used to fund educational recreational

2.
programs in schools
Conditional grants emphasize priority areas for education

3.
development
4. There is a conditional grant for pupils’ meals
5. Conditional grants only cater for teachers’ accommodation
LOCAL REVENUE
1. 5 4 3 2 1
2. Budgets are drawn basing on the revenue collected
i
3. Budgets are drawn basing on tuition collected
4. Expected local revenue comes in time to be included in budgeting
5. Local revenue collected is used in education service delivery
6. District expenditure on local revenue collection is greater than the income
7. The district has a variety of local revenue sources used to finance schools
8. The revenue got from local collections finances a small portion of schools
UNCONDITIONAL GRANTS
5 4 3 2 1
9. Most of the money to schools’ services comes from unconditional

transfers
10. The unconditional transfers are timely for education services
11. The government unconditional grants are too small to help
12. Because of the desire to deliver better education services, the schools ask
for an increase in the unconditional transfers
SERVICE DELIVERY
5 4 3 2 1
13. There is an improvement in number and quality of teachers
14. Feedback on performance is provided on a regular basis by

management
15. There is quality teaching and management of teaching in the school
16. Teachers are zealous to finish teaching load in time
ii
17. The public is satisfied with the services they receive from school
18. There is timely accomplishment of tasks by all teachers in school
19. There is minimization of resources used in the schools
20. There is regular attendance to duty by all teaching staff in the school
21. Feedback on performance is provided on a regular basis by

management
22. The completion rate of lower secondary by students is high
23. The number of staff in schools is adequate
24. The staff is well qualified in most Mukono schools
25. The staff does its duties professionally.
26. The staff has the required experience.
27. Schoolteachers create time for their students and avail time for
consultation.
iii
APPENDIX III: OBSERVATIONAL CHECKLIST
 School library
 Computer labs
 Recreational ground
 Kitchen and nature of food to pupils
 Classroom condition — Number of pupils in classroom
 Number of pupils per desk
 Number of pupils per teacher
 The nature of classrooms
 The conduct of teaching — learning by some teachers
 Nature of water taps in the school compound
 Accommodation to boarding pupils
 Nature of gates to enter into the school
 Protective measure in case of fire — fire extinguishers
 Teaching materials — on the building walls
i
APPENDIX IV: INTERVIEW GUIDE TO KEY INFORMANTS
 Do schools in Mukono Municipality receive conditional grants from the Central

Government? Give reason to support your answers with specific examples
 Are there some of the conditional grants to fund recreation activity? If yes, in what ways
are recreational facilities educative to the pupils?
 Are there local revenues collected from schools? If yes, how does the local government
use the money collected for development of primary schools?
 Do the schools in Mukono municipality involve local governments in drawing budgets?

Give reasons to support your answers.
 In your opinion, how can the revenue collected from the school be used towards services
delivered in schools.
 In your opinion, do you think there is a correlation between the district expenditure and
facilities constructed in schools? Illustrate your answer with examples
 Are there forms of unconditional funding from the government? Give examples of the
findings and how they are directed to specific roles
i
APPENDIX V: DOCUMENTARY REVIEW CHECKLIST
The researcher will review the following documents during the course of data collection
Document Purpose
Mukono District Annual Reports (2012/2013, Information on education service delivery will
2013.2014, 2014/2015, 2015/2016, 2016/2017, be got from this report
2017/2018)
Mukono District Education Officers Reports Information on education service delivery will
(2012/2013, 2013.2014, 2014/2015, be got from this report
2015/2016, 2016/2017, 2017/2018)
Mukono District Audit Report (2015) Information on fiscal decentralization will be

got from this report.
Minutes of Meetings Information on education service delivery will

be got from this report
Local revenue performance report (2016) Information local revenue will be got from this
report
i
APPENDIX VI: KREJCIE AND MORGAN (1970) SAMPLE SIZE DETERMINATION
N S N S N S N S N S
10 10 100 80 280 162 800 260 2800 338
15 14 110 86 290 165 850 265 3000 341
20 19 120 92 300 169 900 269 3500 246
25 24 130 97 320 175 950 274 4000 351
30 28 140 103 340 181 1000 278 4500 351
35 32 150 108 360 186 1100 285 5000 357
40 36 160 113 380 181 1200 291 6000 361
45 40 180 118 400 196 1300 297 7000 364
50 44 190 123 420 201 1400 302 8000 367
55 48 200 127 440 205 1500 306 9000 368
60 52 210 132 460 210 1600 310 10000 373
65 56 220 136 480 214 1700 313 15000 375
70 59 230 140 500 217 1800 317 20000 377
75 63 240 144 550 225 1900 320 30000 379
80 66 250 148 600 234 2000 322 40000 380
85 70 260 152 650 242 2200 327 50000 381
90 73 270 155 700 248 2400 331 75000 382
95 76 270 159 750 256 2600 335 100000 384
i
APPENDIX VII: LETTER OF INTRODUCTION
i
APPENDIX VIII: SIMILARITY INDEX REPORT

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FISCAL DECENTRALISATION AND EDUCATION SERVICE DELIVERY IN PUBLIC

PRIMARY SCHOOLS IN MUKONO MUNICIPALITY, UGANDA

A DISSERTATION SUBMITTED TO THE SCHOOL OF MANAGEMENT SCIENCE IN

Signature: …………………………………. Date: ………………………….

Signature: …………………………………. Date: ………………………….

DR. MICHAEL KIWANUKA

Signature: …………………………………. Date: ………………………….

DR. ANACLET MUTIBA

Any errors and omissions are entirely mine

1.11.3 Time scope..........................................................................................................................15

1.12 Operational definition of concepts........................................................................................16

4.2 Response rate..........................................................................................................................41

5.5.1 Conditional transfers and education service delivery..........................................................71

5.5.2 Local revenue and education service delivery.....................................................................72

Table 3. 1: Sample size and sampling procedure..........................................................................29

BOD Board of Directors

BPS Budget Policy Statement

CVI Content Validity Index

DEO District Education Officer

GoU Government of Uganda

IGG Inspector General of Government

MDGs Millennium Development Goals

MFPED Ministry of Finance, Planning and Economic Development

NGOs Non-Governmental Organizations

PSM Public Sector Management

PTA Parents Teachers Association

RDC Resident District Commissioner

SMC School Management Committee

TTL Task Team Leader

UNATU Uganda National Teachers Union

WBG World Bank Group

WDR World Development Report

1.2 Background to the study

1.2.1 Historical background

1.2.4 Contextual background

Because of the fiscal decentralization constraints explained above, schools in Mukono

1.3 Statement of the problem

The study was guided by the following research hypotheses

1) Conditional transfers have no significant effect on education service delivery in Mukono

2) Local revenue has no significant effect on education service delivery in Mukono

3) Unconditional transfers have no significant effect on education service delivery in

1.8 Conceptual framework

Figure 1.1: Conceptual framework of fiscal ddecentralization and education service

1.9 Significance of the study

1.11 Scope of the study

1.11.1 Geographical scope

1.11.2 Content scope

1.11.3 Time scope

Central government: Is the political authority that governs an entire nation.

Expenditure: Is payment of cash or cash-equivalent for goods or services, or a charge against

2.2 Theoretical review

2.3 Related Review on fiscal decentralization and service delivery

2.3.2 Conditional transfers and education service delivery

2.3.3 Unconditional transfers and education service delivery

According to Kanana (2017), the popularity of decentralization and in particular fiscal

2.4 Summary of literature review

3.4 Sample size and selection

population Category Study Sample size Sampling technique

Head teachers 33 30 Simple random sampling

Teachers and DoS 763 240 Simple random sampling

DEO 1 1 Purposive sampling

DIS 1 1 Purposive sampling

Total 798 272