The Influence of Approved Budget on Promoting Outsourced Revenue Collection Performance of Local Government Authorities in Developing Countries

Local Revenue collection is very imperatives in sustainable economic development especially in developingcountries. This study examined the influence of approved budget in promoting outsourced revenue collection performanceof Local Government Authorities (LGAs) in developing countries. The study opted a time series research design where bysecondary data were used. The population applied on the approved budgets and actual revenue collections from 2009/10 -2018/19 financial years (Quarterly data). The sample size of the study was 44 observations. Arusha City Council (ACC) waspurposively sampled to be used as a research location of this study. Results revealed that, no long term relationship betweenapproved budget and actual collections; with P- Value of 0.00. Conclusively, there is gap that exists between LGAs approvedbudgets and the actual revenue collections due poor projections, Poor negations between government and agents, Politicalinterference, poor estimation of rates and charges. The study recommends in order to ensure potential estimated budgetsare well organized in order to come up with realistic and attainable approved budgets in LGAs in developing countries. Theimplication of the study shows that the LGAs revenue collection forecasts for next financial year estimation should considerthe previous financial years’ revenue collections as the best predictor to aid in their revenue collection