THE SOURCES OF REVENUE AND EXPENDITURE IN LOCAL GOVERNMENTS.
TABLE OF CONTENT
1.2 BACKGROUND OF THE STUDY
1.3 STATEMENT OF PROBLEM
1.4 PURPOSE OF THE STUDY
1.5 SIGNIFICANCE OF THE STUDY
1.6 DEFINITION OF TERMS
2.0 CONCEPT OF REVIEW ALLOCATION
2.1 LOCAL GOVERNMENT SOURCES OF REVENUE
2.2 LOCAL GOVERNMENT BUDGET
2.3 REQUIREMENT FOR LOCAL GOVERNMENT BUDGET
2.4 LITERATURE REVIEW
3.0 SUMMARY OF FINDINS
1.1 BACKGROUND OF THE STUDY
As the need for development in every part of a sovereign nation arose, it became important a device a means through which the source of development will reach to every part in question.
The local government concept holds that the key to challenge all other developed areas and achieving a general goal concept of ability to give everybody in a given country, allocations according to what the person needs most. The local government is a tier of the government which gives room for the interest of people who live in local and remote areas.
The source of revenue and budget planning in local government start with a well defined administration in government, especially in federal and state government, which with the inclusion of the local government, make up the three tires of government.
By revenue and allocation and budgeting in local governments, the inhabitants needs are defined and planned for. This means that does inhabitants are also regarded as bona fide citizens and domiciles of the country, especially as it relate to the village where literate ones are in minority. The aim of creation of local government is to delight the citizens of the country. In fact, this is a higher standard an may be the secret of great politicians, all things being equal.
Coordinated political answers, that all the various government functions like, meaning of roads, licensing bicycles and wheel barrows, primary school building and so on are properly integrated and well coordinated with other tiers of the government[federal and state].
The most profitable aims of local government is to ensure that the allocations that is due for any local government is received and well budgeted so as to avoid lot of regrets in the expenditure in cured.
Several authors have started the need of local government revenue allocation and budget planning according to the way each author sees it, but most importantly, the different views of the author boils down to have the same meaning; increase in literacy terms, ensuring to good health and well being of people ant most importantly, expansion of development.
From what have been seen or read today, not every local government adopt the issue of revenue and budget planning.
Since development is a vital requirement of local government, it is conventional to regard it as a first purpose of a country especially in Nigeria. for we all know that it is possible to create many local government without a profit for a time, but it is not possible for it to survive for one day with out proper care by the federal and state government.
The local government allocation and budget planning in Nigeria can be traced back to less than 100 years ago. The activity of the transitional cooperation, the financial transaction of local government, the creation of the eastern, western, northern part of the country by the colonial men, all those required an institution of the form of revenue allocation and budget planning.
In the past the revenue allocation and budget planning is done by the federal government of Nigeria. This was very difficult because the need of those in remote areas are not well ascertained; therefore the problem continue to linger. Because of this fact, the federal government decided to split the major state of the country into other smaller states who have something in common so as to find it easier to determine how to place allocation and how these allocations are to be spent according to the budgets.
More so, this study is to find out, if these local government depend on the allocation by the higher government, or is their any other means in which a local government can generate revenue on its own and also budget based on that.
1.2 STATEMENT OF PROBLEM
An acceptable formula for revenue allocation and budgeting in local governments have remained a thorn in the flesh from the cradle to the present date. The problem is as volatile as that of obtaining an acceptable population census in this country. in fact, both problems are mutually inclusive whenever one attempts analysising the independents to Nigeria economy and development. Sharing of “national cake” among the different component of economy is irretrievably tied to population factor. The effect of this is that a country is finding it difficult to obtain an accurate population census.
The historical development of revenue allocation and budget planning as it relate to local governments can be dated back to the fiscal report of sir Phillipson commission published in 1947 and titled “the administration and financial procedure under the 1946 Richard constitution”. Since then, Nigeria has put into trials for more than twelve formulae for the sharing of national revenue. Unfortunately, none have been found satisfactory by everybody, and each one has generated more controversy than the last one. An increasingly laud complaints of the oil producing areas about the “in equality” of the present formulae are giving more serious urgency to the issue, especially as oil has remained jugular and backbone of the Nigeria economy, providing over 90% of the country’s earning from exports. Thus beginning from mid 1970’s to take 1980’s, oil revenue accounts. For about 90% of the federal earnings. With the income diversification policy, strategies adopted in 90’s I e export promotion import substitution, backward integration, small scale industrialization development, commercialization and privatalization programmers etc. percentage income from oil proceeds have progressively dwindled as non oil revenue share have emerged into the scenery.
More over, the issue of revenue allocation and budgeting planning in local governments remains an outstanding problem in Nigeria government.
1.3 PURPOSE OF STUDY
From all that has been written above, it is the aim of this study to take a segment of the local governments of Nigeria, and study the approach of the governments to their allocation and budgeting so as to ensure the well being of those local governments.
- whether or not; the local government apply the principle of revenue
allocations and budget planning.
- whether or not local governments depend only on the allocations due
them from the higher governments.
- how the problems faced by local governments in the issue of revenue
allocation and budgeting can solved.
- if local government inhabitants are satisfied with the strategies being
used on them and their welfare.
1.4 SIGNIFANCE OF THE STUDY.
The significance of this study is to disclose the aims and objectives of the issue of revenue allocation and budget planning which cannot be overemphasized.
- the need for brining economic development and growth to every part
to every through local government.
- the need for classifying each government according to its culture and
- To how far and how well, the issue of local government allocation of
Revenue and budget planning has contributed to the people in question; and
- To expose also, how problems associated with the topic is caused by the people who are the inhabitants of the local government.
DEFINITION OF TERMS.
- sovereign – An independent state who has complete power or the greatest power or the greatest power in the country.
- Local government – A local government is a part and last among the three tiers of the government.
- Remote areas – A place that is away from where people live and are also occupied by few persons.
- Revenue allocation:
Revenue means the money that a government received from taxes or dividends Revenue allocation is the process of sharing
Revenue according to how it belongs to different governments.
- Budget planning: get is defined as a financial and/or quantitative statement Prepared prior to a defined period of time, of the policy to be pursuedDuring that period for the purpose of attaining a given objective.
- Federal government; It is a government in which the individual state of a country. Have control over their own affair; but are controlled by the central Government.
- Inhabitants; The inhabitants in this context means people who lived in a particular area.
- Citizens and domiciles; Citizen are people who are born in a country like Nigeria, while Domiciles are people who have lived in that country for up to or more Than 15 years.
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