Juma Teko, Isaac Nkote, Namakula Sarah Jannat
Decentralization has been adopted by many economies as a tool to achieve objectives of better service delivery, attraction of more donor support necessary for capacity building all of which are important for increased revenue mobilization. The purpose of the study was to establish the relationship between Capacity Building and Fiscal Capacity in Mbale district local government. A cross sectional correlation approach was used to undertake the study. Stratified, purposive, convenience and simple random sampling involving a sample of 143 was used to obtain data about the study variables.The findings reveal that there was a significant positive relationship between Capacity Building Fiscal Capacity. It is recommended that more fiscal powers should be devolved to local levels and the central government remains committed to its decisions; both central and local governments should negotiate with donors to accept local government priorities and more Capacity Building programs based on local government needs should be undertaken.
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