Proposal on the importance of Equitable Allocation of Revenue Resources in Nigeria. Equitable Allocation of Revenue are allocation given to air economy to reduce inequalities among them, as regard to the financial resources available in the country.
The factors that should be considered to ensure rational allocation of revenue are population, size, wealth and level of development. The allocation of revenue based on these factors above will help the economy to attain economic growth and development, which is the most important thing in any successful economy. The need for allocation of revenue arises because of such inequalities.
When revenue resources are equitably distributed to various sectors of economy, there are benefits that could be achieved:
Enhancement of standard of living:
If the revenue resources are equitably allocated in a given economy, the standard of living in such area will increase.
Development: Since economic growth and development depend on the available resources, the more resources are fairly allocated in the economy, the more the level of development. The resources could be used in the provision of good roads, health care delivery services, electricity etc.
Employment opportunities: Employment are created to the masses when allocation of resources are used in the provision of infrastructural facilities.
Poverty alleviation: This is a mean by which poverty are eliminated in a given country. It is done by any sector of economy. This could be made possible if proper allocation is made to the sector.
The sources of Revenue in Nigeria are:
Taxation: This is a compulsory levy paid by individual to government from their earnings.
Agriculture: this is the major sources of revenue to the government before the invention of petroleum production on the economy.
Rent: Here, the state and federal government generate a huge sum of money from the use of its poverty by masses.
Specific charges: These are fees charged by the government in attempt to forgive an offence committed. There are also other fee charged by the government such as vehicle license fees, market fees etc.