Re-conceptualizing fiscal decentralization framework to improve service delivery: a case of uMgungundlovu District Municipality.

Abstract

This research explored the concept of fiscal decentralisation by proposing a comprehensive framework tailored to the unique context of the uMgungundlovu District Municipality. Fiscal decentralisation, a pivotal component of effective governance, aims to redistribute financial authority and responsibility between higher-level governments and local authorities. This research aimed to redefine the fiscal decentralisation framework within the uMgungundlovu District Municipality, with a focus on crafting a comprehensive model that accommodates the distinctive socio-economic and political intricacies of the region. The research problem stems from the absence of a customized fiscal decentralisation framework tailored to the nuances of the district, as the conventional one-size-fits-all approach to fiscal decentralisation seem to fall short in effectively addressing the unique challenges faced by uMgungundlovu. In doing so, it sought to address the research problem of how fiscal decentralisation can be effectively structured and implemented to promote local development and efficient resource allocation. Employing a qualitative research approach, the study utilised purposive sampling to select 19 participants with in-depth knowledge and experience in local governance and fiscal matters. Thematic analysis was employed to analyse these qualitative data, identifying recurring patterns, concepts, and insights related to fiscal decentralisation within uMgungundlovu District Municipality. The findings underscore the need for community participation in fiscal decision-making, emphasizing the need for a re-conceptualized framework that empowers both local governments and actively involves communities in budgetary discussions. The findings thus stressed the importance of capacity building and institutional strengthening at the local level, addressing challenges in human resources, financial management, and technological infrastructure. The research recommends targeted interventions to enhance local government capabilities. Moreover, it contributes to the theoretical foundations of fiscal decentralization by promoting a context-specific approach, incorporating community perspectives, and offering practical guidance for policymakers to design and implement effective policies aligned with the realities of local governance. Based on the study's outcomes, it is recommended that uMgungundlovu District Municipality develop a clear and inclusive fiscal decentralisation framework tailored to its unique socio-economic context. This framework should address issues of revenue generation, allocation, and expenditure, while also emphasising mechanisms for transparent governance and community involvement.