Assessing the Effectiveness of Fiscal Decentralization Policy on Public Service Delivery: A Case Study of Chilanga Town Council’s Revenue Collection

The thesis critically assesses the effectiveness of fiscal decentralization in enhancing public service delivery, using Chilanga Town Council’s revenue collection as a case study. It situates the analysis within global, regional, and local contexts, showing how decentralization reforms have strengthened local revenue mobilization and improved services when supported by institutional capacity, citizen participation, and digital innovation. At local level, the study traces decentralization reforms from the Local Government Act of 1991 to the Revised National Decentralization Policy of 2013. It notes that councils like Chilanga have been empowered to raise revenues through property rates, business licenses, market fees, and levies, yet continue to face challenges. Setbacks include weak ICT infrastructure, poor digital literacy, limited administrative capacity, political interference among others. Adopting Decentralisation Theory as its framework, the study argues that effective fiscal independence depends on institutional readiness, local accountability, and intergovernmental coordination. Using a mixed-methods approach that combined surveys, interviews, document reviews, and descriptive analysis, the findings reveal that Chilanga Town Council has recorded notable revenue increases, particularly through innovations such as mobile money platforms and strengthened monitoring mechanisms. These tools have contributed to improvements in waste management, road maintenance, water access, and market infrastructure. Nevertheless, persistent setbacks remain. This includes reliance on manual systems, fragmented institutional frameworks, inadequate staff skills, and weak enforcement capacity. In addition, citizens also expressed scepticism about transparency and service reinvestment. This in turn undermines tax morale and compliance. The study concludes that while decentralization has enhanced local revenue generation and enabled incremental service improvements, Chilanga’s success is constrained by systemic administrative, financial, and technological bottlenecks. The study recommends targeted investments in ICT infrastructure, and staff capacity building. Other recommendations are public sensitization campaigns, participatory budgeting, and stronger legal frameworks that will reduce political interference and corruption. Additionally, it champions for leveraging public–private partnerships (PPPs) to address financial and technical gaps. If these issues were to be addressed, Chilanga can increase its revenue base, and strengthen fiscal independence. Revenue gains translate into equitable, transparent, and sustainable public service delivery. Thus, reinforcing Zambia’s decentralization agenda and aligning with broader governance reforms across the region.