Local Government Financing: An Analysis of the Effects of Equalization Funds on Service Delivery in Selected Local Authorities in Zambia

The study Analysed the Effects of Equalisation Funds on Service Delivery in Selected Local Authorities in Zambia. It determined the financial, technical and administrative effects of equalisation funds and the extent to which Local Authorities utilise the funds. The finding of the study show that Local Authorities do not adhere to the prescribed guidelines on the utilisation of Equalisation Funds. Their employed methods of service delivery have proved to be very effective in the case of Town Councils, while in City and Municipal Councils, effectiveness of the methods is still below residents’ service expectation. The study concludes that, with the introduction of Equalisation Funds, estimates of revenue and expenditure for Local Authorities have been rising steadily, while their fiscal effort has been declining. The study recommends a redesigning of the Fiscal Architecture and the strengthening compliance to Financial Management Regulations by Local Authorities