Understanding the impact of financial sustainability on South African municipalities

Mbulawa, Abe

doi:10.4102/td.v15i1.656

Cited by 6 publications

(4 citation statements)

References 16 publications

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“…Results show financial distress in local governments is likely caused by both the governance and delivery system in place and these are consistent with those of Acharya (2018), Mbulawa (2019) and Mugambi (2014). These results point to the view that an improvement in the delivery system may involve huge expenditures in capacity development and community participation which in turn deny the local governments the opportunity to use such resources for service delivery and therefore causing financial distress.…”

Section: Discussionsupporting

confidence: 74%

“…Their staff urgently needs to be equipped with the knowledge and skills required to manage the funds involved for effective local service delivery. Mbulawa (2019) and Pandeya (2015) also show that delivery system and adverse financial health are positively related. However, Mugambi (2014) uses a descriptive survey to gather data and finds a negative relationship between service delivery mechanisms and financial distress.…”

Section: Delivery System and Financial Distressmentioning

confidence: 93%

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Local governance and financial distress in local governments: the mediating role of delivery system

Wakwabubi¹,

Nkundabanyanga²,

Orobia³

et al. 2023

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Purpose The purpose of this paper is to establish the mediating role of local government delivery system (here after delivery system) in the relationship between local governance (hereafter, governance) and financial distress of local governments in Uganda. Design/methodology/approach This study is correlational and cross-sectional. It uses a questionnaire survey on a sample of 109 local governments (districts) of Uganda. The data are analysed using SPSS, partial least squares structural equation modelling and Jose’s MedGraph. Findings Results indicate that government delivery system mediates the relationship between governance and financial distress. Delivery system in terms of capacity development and community participation causes positive variances in local government’s financial distress. Also, governance in terms of political clientelism significantly contributes to financial distress more than oversight mechanisms and audit quality. The study finds that delivery system causes more variance in financial distress than governance. Originality/value This study applies the new public management and network governance theory and tests the efficacy of delivery system and governance on financial distress in one-go and succeeded in explaining financial distress of local government using Uganda as the setting; the authors join previous scholars that root for multi-theoretical approaches. Also, this study’s design has allowed for the consideration of more than simply the main effects of governance and delivery systems by exploring the mediating role of delivery systems in the link between governance and financial distress. As such, the authors may now have a more accurate and detailed description of the relationships between governance, delivery system and local government financial distress.

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Section: Discussionsupporting

confidence: 74%

Section: Delivery System and Financial Distressmentioning

confidence: 93%

Local governance and financial distress in local governments: the mediating role of delivery system

Wakwabubi¹,

Nkundabanyanga²,

Orobia³

et al. 2023

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“…Budget solvency is very important for regional governments in order to achieve financial sustainability (Mbulawa, 2019). Cuadrado-Ballesteros et al (2019), found that budget solvency and service level solvency have a positive influence on financial sustainability.…”

Section: Budget Solvencymentioning

confidence: 99%

What Determines Financial Sustainability in Local Government? Evidence from Aceh Province, Indonesia

Syahriyal,

Abdullah,

Meutia

2024

reaksi

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This research aims to determine the influence of financial independence, budget solvency, service solvency, population, and GRDP on local government financial sustainability. The results of this research are important to provide input for local governments in arranging appropriate policies to encourage financial sustainability. This research was conducted on 23 regional governments in Aceh by using the panel data regression analysis method with the assistance of the Eviews 12 version. The data was taken from the audited financial reports of regional governments in the 2017-2021 period. This research employed income surpluses in operational reports to measure regional government financial sustainability. The research results show that financial independence has no effect on financial sustainability, but budget solvency and service solvency have a significant positive effect. In contrast, population and GRDP have a negative effect on financial sustainability.

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“…Most research on sustainability in municipalities is done on financial sustainability and not wholly on the sustainability ecosystem. Research and audit reports revealed that municipalities in South Africa are plagued by cadre employment, a skills deficit, and a lack of financial sustainability [26].…”

Section: Sustainability Monitoring Evaluation and Measurementmentioning

confidence: 99%

A Sustainability Model for a Municipal Entity

Brink,

Singh

2023

Preprint

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The main purpose is to create a model for managing sustainability in the metro and its entities in Gauteng. Within this context, the study will focus on the issue of measures, outcomes, and impacts in the City of Johannesburg (CoJ). The study will clarify a public sector application in municipal entities of the CoJ because sustainability is not well understood or used in the public sector. This article investigates the sustainability phenomena in a metropolitan setting, including the CoJ and its municipal entities. The purpose is rather two-fold. A focus group discussion was held with CoJ senior executive managers to provide feedback on the sustainability model. The information and insights were used to refine the sustainability model to manage sustainability in Coj and its enti-ties. The data was analysed using thematic analysis to refine the sustainability model. The re-sults indicated that sustainability is a function of having a shared understanding of sustainabil-ity, the ability to mainstream and integrate sustainability thinking into all programmes and ac-tivities, leadership commitment, requisite competencies, and monitoring and evaluation of sus-tainability. The implication for leadership is to ensure the alignment of sustainability to the strategic objec-tives of CoJ and to foreground any planning in CoJ with a sustainability lens. Achieving this focus requires a shared understanding, development of competencies, committed leadership to imple-ment measurement and impact framework, and adjusting plans based on monitoring and evalua-tion outcomes.

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Understanding the impact of financial sustainability on South African municipalities

Cited by 6 publications

References 16 publications

Local governance and financial distress in local governments: the mediating role of delivery system

Local governance and financial distress in local governments: the mediating role of delivery system

What Determines Financial Sustainability in Local Government? Evidence from Aceh Province, Indonesia

A Sustainability Model for a Municipal Entity

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