LOCAL GOVERNMENT REFORM PROGRAM ON EFFECTIVE FINANCIAL TRANSPARENCY IN TANZANIA: THE CASE OF UBUNGO MUNICIPAL COUNCILS (UBMC)

Financial transparency has been identified as a key feature of efficient public financial management in Local Government Authorities (LGAs) in Tanzania. However, the factors which undermine fiscal transparency in LGAs remain an empirical challenge, and extant literature in developing countries is still sparse. The purpose of this study was to explore why, after a decade of fiscal transparency reform programs, many developing countries in particular Tanzania is still lagging behind in financial transparency in LGAs particularly UBMC. To that end, this study adds knowledge on the factors which undermine fiscal transparency in LGAs and the ways forward in Tanzania. This study used a case study research design, purposive sampling was used to select 86 respondents and the methods of data collection were interview, and documentary review while data were analyzed through content analysis. The findings indicate that the level of education and the embezzlement of public funds and, weak oversight of the citizens negatively affect fiscal transparency in LGAs. It is therefore concluded that UBMC financial transparency process should be part and parcel of UBMC so that citizens may trust their government after being furnished with the financial information related to financial utilization and collection in LGAs in Tanzania. This study recommends that UBMC should make sure that relevant financial information about the finances and other local government activities should be made public timely on request including to the public, media, civil society organization, and citizens.