The income levels are generally low and irregular over the year.  The greater proportion of the people is either engaged in subsistence agriculture, small-scale industries or petty trade.  Incomes of this category of people are usually irregular or seasonal.  The average earnings of these smallholders and other low income earners ranges between ¢350,000.00 and ¢1000,000.00 p.a.

The medium and higher income group earn between ¢1000,000.00 and ¢2,000,000.00 per annum. A significant proportion of the population of the district, over 75% is living  the lower poverty line of 900,000.00 cedis (or approximately $120 us) per annum.  The general poverty level in the northern region is estimated at 69.2%.

DA revenue and fiscal management

presently, the district is served by only one bank, the Ghana commercial bank, whose coverage is mainly limited to Salaga and its environs.  Savings rate are extremely low and the volume of bank loans to support investments is extremely negligible. In terms of the reduction of government expenditures, the main effort in East Gonja has been to eliminate all ghost names on government payroll in the district. Currently, there is no single alleged ghost name on government payroll in the district, thereby keeping leakages from government expenditures low.

The main funding sources available to the district assembly include:

   1. Internally generated fund (mainly rate funds)
   2. HIPC relieve funds
   3. DACF
   4. Other GoG (mainly for personal emolument and fe’s)
   5. Support from development partners (EU, DWAP, CIFS, DFID, IBIS, CBRDP,    UNICEF, WHO, CCFC & NORPREP)

among these sources, the DACF constitute the most reliable source to the district followed by those from development partners. IGF remains the least principally because of:

    * the unwillingness of the people to pay
    * leakages in the revenue collection mechanism
    * inadequate data on rateable items
    * the unwillingness of the people to pay
    * leakages in the revenue collection mechanism
    * inadequate data on rateable items

Nevertheless, the performance of each of the thirteen (13) town/area councils in terms of their contribution towards IGF over the last three years is as indicated in the table below:

Kulaw area council remains the highest performing area council in internally generated revenue over the three-year period followed by Makango/Kafaba and Bunjai remains the least.

Disbursement of DACF is strictly in compliance with approved guidelines issued by the ministry of local government and rural development. Supplementary budgets are prepared and approved by both the executive committees and the general assembly. These are then forwarded to the RCC, NDPC and the MLGRD for approval before the funds are disbursed. All contracts are advertised and bids evaluated by the district tender board before the contracts are awarded. Also, contractors have to obtain the necessary certificates and warrants on completion of their jobs, before payments are finally made.
UNICEF, WHO, CCFC & NORPREP)    

Agric

Agriculture is the predominant economic activity and it employs over 81.8% of the economically active labour force (2000 PHC reports) in the east Gonja district. Crops produced are mostly roots and cereals.

Even though the  district seems to be doing well and there is huge food balance from 2003 to 2005, there is still the problem of food security. This is largely due to high post harvest losses and types of food items available resulting from the reliance on a single rainfall regime that is very erratic.
 
The average yield per hectare of food crops is most favourable for the roots and tubers (cassava and yams) with 2005 recording very high figures for yams. Cassava for instance did not do well, it fell from 16.1metric ton per ha to 3.5. The reasons were inadequate credit and poor market for the crop. Meanwhile the district assembly through a facility from government is providing one of the psi’s on cassava sited in Salaga.
   
For livestock, and cattle in particular, native cattle is only about 17,000 out of the 70,132 which meant that there are a lot of the alien (fulani) herds in the district with their attendant problems.
The performance at the BECE level continue to be very poor but that of the girls in particular is worse, a situation that cannot be accepted. Reasons being that:

   1. Inadequate supply of teachers and to some extent trained ones.
   2. Low parental commitment to the education of their wards.
   3. Refusal of skilled personnel to accept postings to parts of the district.
   4. Poor performance at BECE especially in Salaga.

Financial institution

The East Gonja district enjoys the services of Ghana commercial bank and it is the only resident banking institution in the district.  

Social enterprise development (send) foundation of West Africa facilitated the setting-up of two credit unions in the district and are currently mobilizing and supporting their registered members with credit facilities.

The business advisory centre (BAC/NBSSI) is also implementing the micro-project programme (MMP) an income generating projects funded by EU which targets direct socio-economic development of grass roots communities by allowing a direct partial financing of local projects to be undertaken at the beneficiaries’ initiative.

The BAC also runs the rural technology factory which gives training to the youth in basic in manufacturing of farm implements and household and sanitary equipment and also renders service to organizations and individuals.

The district also established a cassava processing factory in Salaga to process cassava into products such as flour, cakes, starch, animal feed and other products, however this facility is highly under utilize and the district is canvassing for partnership to put the facility in to full utilization.