Maximization of local welfare required sound generation of revenue from the sub-national governments. Unfortunately, the process of fiscal devolution maximizing local welfare has been slow, especially in Africa. This study, therefore, examined the effect of internally generated funds (IGF) on local welfare maximization at the sub-national level using secondary data from 2003 to 2020. The study employed trend analysis and due to the limitedness of the data, the eight-year annual data was converted into thirty-two quarters to allow more degree of freedom using EViews software. The study found that though internally generated funds were improving, the growth was not enough to have been able to maximize basic education and primary healthcare at the sub-national level. Thus, internally generated funds had no significant relationship with local welfare maximization in the Districts of Ghana. The study recommended that there should be a sound capacity-building program on data gathering, and revenue forecasting leading to the automation of revenue generation. Again, behavioral sciences on public revenue management should be provided for all District Assemblies in Ghana.

Keywords: IGF; Basic education; Primary healthcare; District Assemblies; Ghana.