Sources of Revenue and Budgeting in Local Government Akoko North
Chapter One
OBJECTIVE OF THE STUDY
The main objective of the study is to ascertain the source of revenue and budgeting in local government with an emphasis on Akoko North LGA. But to aid the completion of the study, the researcher intends to achieve the following specific objectives;
- To examine the various sources of revenue and how they aid budget implementation in Akoko North
- To examine the relationship between revenue source and budget implementation
- To examine the role of the revenue mobilization committee in revenue generation
- To ascertain the impact of budgeting on project execution in Akoko North LGA
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
The term “Local Government Administration in Nigeria has attracted serious attention both nationally and internationally since the great reform of 1976. Incidentally, it was this reform in question that opened the rural area to any meaningful development in terms of in-put that could be garnered from the federation account. The military administration of Murtala/Obasanjo (1976-1979) is usually regarded as a period of watershed in the anals of local government administration in Nigeria. This was the first time a concerted effort was made by the federal government to brighten the future of local government. Local Government was not only accorded its pride of place in socio-economic well-being of the country, it was also seen as a way of bringing government closer to the people. Consequently, a uniform system known as single tier structure was adopted throughout the country; this uniformity can be conceptualized in terms of: The functions of local government; the structure of the local governments; the financial resources of the local governments; relationships with state government; and law enforcement processes and procedures (Ola: 84, 87) The Nigeria 1976 Local Government Reform and the subsequent one that follows are geared towards making local government bedrock for socio-economic and political development. Somehow, the 1999 constitution seems to have overridden the gains and aspirations of this tier of government with the exclusion of local government from the constitution. This phenomenon has become a critical issue since the beginning of the Nigeria Fourth Republic The authors of 1976 local government reforms also conceived that, for the reforms to have appreciable impact at the grassroots, the local government officers as well as political functionaries must be given free hand to operate effectively with little or no interference in their affairs. The 1999 constitution of the Federal Republic of Nigeria largely recognized the existence of Local Government. The constitution states inter allia: The system of local government of democratically elected government councils is under this constitution guaranteed, and accordingly, the government of every state shall, subject to the section 8 of this constitution, ensure their existence under a law which provides for the establishment, structure, composition, finance and functions of such councils.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to examine sources of revenue and budgeting in local government in Akoko North.
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information on the study sources of revenue and budgeting in Local government in Akoko North. 200 staff of Akoko North LGA was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was on an assessment of the sources of revenue and budgeting in local government in Akoko North.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given.
In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of revenue sources and budgeting in Akoko local government
Summary
This present study has critically examined local government’s tax mobilization and utilization in Nigeria. Local Governments in Nigeria receive statutory allocation from both the Federal and State governments. They also generate internal revenues through taxes and fees etc. It is opined that expenditure assignments should match with revenue generating powers in order for local governments to discharge their functions effectively. In essence, revenue and expenditure decentralization must support local government public revenue profile. Local government revenue generation in Nigeria needs restructuring so that taxing powers be given to Local authorities and also it should be allowed to share major tax bases with other levels of government to enable enough independent funds for development. It is noted that federal government is highly favored in all the revenue allocation systems so far and fiscal federalism is tilted more in favor of the federal government. This, in a way, is affecting the economic survival of the sub-national governments. Local governments therefore, shall strive towards improving internally generated revenue and instill transparency and accountability in their management structure.
Conclusion
Local Government stands tall in the development of any country that adopts the three tiers formation of government (federal, state and local government). Local government is faced with an enormous task of driving development to the grass root which constitute above 70% of the population of most developing nations including Nigeria. Economic and every other forms of development are channelled and championed by local government administration. Fulfilling the enormous and well planned policy drive and expectations that local government administration has to offer, financial appropriation and allocation has stalled the full To boast and come out with the best of the expectancies of what the local government areas stands to offer, the place of financial appropriations and allocation cannot be exonerated hence, the importance of budgeting. Realization of the statutory rights, privileges and objectives of the provision of section 7, subsection (1) of the 1979 constitution of the Federal Republic of Nigeria. The existence of the state joint account with the local government councils has seriously impedes the maximum impact the grass root people should have felt from local government administration therefore, defeating its aim and creation. The position of this paper is that a well clear-cut policy that regulates the state government interference and dominance of local government administration especially in the area of financial appropriation and allocation is a tonic to realizing and achieving the intentions of rural development.
Recommendations
Haven completed the study, the following recommendations were proffered by the researcher;
Budgetary actors should realize that expenditure of public funds entails opportunity cost. In a sense, this means making prudent choices to ensure that important societal preferences are provided for, while less pressing needs are postponed, for future action. In other words, officials should be sensitive to the peculiar environment of their local government and the budget should be adequate in response to these peculiarities.
All planned projects to be included in the budget should be within the resources of the local government. Project should not start if the sources of funds are uncertain.
Annual estimates (budgets) are the concern of all the functionaries in the local government. It is, therefore not the responsibility of the Treasurer alone. As a corporate exercise it should be taken seriously by those concerned. Executive time should therefore be allocated to the exercise.
The federal government should make funds available to the local government adequately and on time too. If funds are not available, budgeting will be more theoretical exercise.
Reference
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