Public Administration

The Impact of Poor Revenue Generation on the Development of Local Government Areas – PDF

The Impact of Poor Revenue Generation on the Development of Local Government Areas

ABSTRACT

Revenue generation is the nucleus and the path to modern development. Thus, the study was to assess the impact of poor revenue generation on the development of Local Government Areas. This is because local government as the third tier of government and the closest to the people especially in the rural areas needed revenue to provide basic social amenities to the people. But it is unfortunate to note that the local government management has not lived up to expectations especially to provide basic social amenities to the rural people. Thus, the objective of the research was to analyze the extent to which poor revenue generation had affected the development of those areas. The researcher used primary and secondary methods of data collection to generate the needed data. The data obtained through the questionnaire was presented in tables and expressed in simple percentages. The following were some of the findings which included poor development of the areas, lack of basic social amenities to the rural people and lack of revenue to maintain the existing infrastructures. The researcher, therefore, recommended that the local government should provide basic amenities of high quality. By doing so, the people’s interest would be geared towards giving their maximum support to the local government which would lead to the development of the rural area.

TABLE OF CONTENT

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

1.2 STATEMENT OF THE PROBLEM

1.3 PURPOSE/OBJECTIVE OF THE STUDY

1.4 RESEARCH QUESTIONS

1.5 SIGNIFICANCE OF THE STUDY

1.6 SCOPE AND DELIMITATION

1.7 LIMITATION OF THE STUDY

1.8 DEFINITION OF TERMS

CHAPTER TWO

LITERATURE REVIEW

2.0 DEVELOPMENT OF LOCAL GOVERNMENT IN NIGERIA

2.1 SOURCES OF REVIEW GENERATION IN LOCAL GOVERNMENT

2.2 THE NEED FOR REVENUE GENERATION IN THE DEVELOPMENT OF LOCAL GOVERNMENT AREAS.

2.3 THE PROBLEMS OF REVENUE GENERATION

2.4 THE IMPLICATION OF REVENUE GENERATION ON THE DEVELOPMENT OF LOCAL GOVERNMENT AREAS

2.5 TAX AS A MAJOR SOURCE OF REVENUE

2.6 THE PURPOSE OF TAX

2.7 PROBLEMS ASSOCIATED WITH TAX COLLECTION IN IDEA TO LOCAL GOVERNMENT AREA

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

3.2 AREA OF STUDY

3.3 POPULATION OF THE STUDY

3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES

3.5 INSTRUMENT FOR DATA COLLECTION

3.6 SOURCES OF DATA COLLECTION

3.7 VALIDATION OF INSTRUMENT

3.8 METHOD OF DATA ANALYSIS

CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

CHAPTER FIVE:

5.1 SUMMARY OF FINDINGS

5.2 RECOMMENDATION

5.3 CONCLUSION

BIBLIOGRAPHY

APPENDIX

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Development is a sine qua non for modern civilization. In a crusade and struggle to carry out development at all nooks and crannies of the society, the local government as the tier of government that is nearest to the people is saddled with the responsibility of direct development of the people to a certain level.

Development is highly associated with funds, much revenue is needed to plan, execute and maintain infrastructures and facilities at the local government level. The needed revenue generated for such developmental projects. Like the construction of accessible roads, the building of public schools, health care centres, construction of bridges among others are soles generated from taxes, royalties, haulages, fines and grants from states, national and international governments.

Thus, the Local government cannot embark, execute and possibly carry out the maintenance of these projects and other responsibilities without adequate revenue generation.

This is the basic reason why development is skeletal at some Local Government councils in Nigeria. The issue of poor revenue generation is not exceptional to local government in Abia State. This has been one of the problems encountered by the IdeatoLocal Government.

This however pronouncedly affected development negatively in local government councils. In this research project, the issue to address is how far can this poor revenue generation affect development, especially in IdeatoLocal Government.

1.2 STATEMENT OF THE PROBLEM

The Local Government Council take direct care of the grassroots people, that is the people in the rural areas. This group of people sometimes lack essential facilities and condition of modern civilization. They lack pipe bore water to drink, do not have electricity, accessible roads, poor educational infrastructure and facilities to mention but a few.

This is one of the major reasons for the rural-urban migration of movement. This has made our cities to be congested and increase many criminal activities. Based on the above and foregoing assertions, it is obvious that the impact of poor revenue generation on the development of the rural area is a serious problem. This might be a result of poor revenue generation. If Nigeria is to achieve her desired goal of vision 2020 and possibly meet the millennium development goals (MDGs) target, the issue of revenue generation must be addressed squarely.

Hence the researcher is bothered to find out the impact of poor revenue generation on the lives of people in the rural area and how it has affected development in general especially in IdeatoLocal Government Area.

1.3 PURPOSE/OBJECTIVE OF THE STUDY

The broad objective of the research is to evaluate the impact created by poor revenue generation on the development of Ideation Abia State.

The other objective of this study includes:

i. To determine the level of modern social amenities available in Ideato North.

ii. To find out the level of poverty associated with the rural people as a result of poor development

iii. To find out the degree of rural-urban migration.

iv. To make useful suggestions to solve the problem of poor revenue generation as development depends on revenue generated.

1.4 RESEARCH QUESTIONS

i. What are the impacts of poor revenue generation on the development of Ideato North?

ii. Are there adequate modern social amenities in Ideato North?

iii. Is the poverty level of the rural people high as a result of poor development?

iv. Has poor revenue generation in Ideatocontributed to rural-urban migration?

v. How can revenue generation in Ideatobe improve?

1.5 SIGNIFICANCE OF THE STUDY

The significance of any human endeavour is measured by its relevance to solving human problems. The findings of this study would help IdeatoLocal Government to identify the problems associated with revenue generation and its consequences on development.

1.6 SCOPE AND DELIMITATION

The study is focused on the impact of poor revenue generation and how it affects the development of the local government areas. It will also involve the analysis of problems associated with revenue generation and its impact on the development of IdeatoLocal Government.

1.8 DEFINITION OF TERMS

Some concepts require proper explanation to enhance our understanding of the theme where the necessary opinion of scholars will be cited to explain the terms. The researcher will also give some fundamental definitions of terms.

LOCAL GOVERNMENT

According to Lawal (2000), Local Government is a political subdivision of a nation in a Federal system that is constituted by law and has substantial control of local affairs which includes the power to impose taxes or exact labour for prescribed purposes.

According to William Robson (2006) Defined Local Government as involving the conception of territorial, non-sovereign community possessing the legal right and the necessary organization to regulate its affairs.

REVENUE

Public revenue could be defined as the funds generated by the government to finance its activities. In other words, revenue is the total fund generated by the government (Federal, state, local government/ to meet their expenditure for a fiscal year.

This refers also to the total of money of income received from the source of which expenses are incurred. Revenue could be internal or external revenue.

GENERATION

This is the process of sourcing revenue for the local government to carry out their aim and objectives.

EXPENDITURE

Public expenditure refers to the expenses which the government incurs for its maintenance, in the interest of the society and the economy to help other countries.

Tax

Tax can be defined as a compulsory levy by the government on goods, services, income and wealth. It provides a definite source of revenue for government expenditure. (Udeh O.S. 2008)

It is the way by which government obtain extra money. It is spent from the income of individuals and companies. The tax could be direct or indirect. A tax is a payment made by the taxpayers and used by the government for the benefit of all the citizens.

TAX EVASION

Tax evasion means an illegal reduction in one’s tax liabilities, thereby paying less than the appropriate amounts and not paying at all.

TAX AVOIDANCE

Tax avoidance is the act of streamlining one’s financial affairs within the law to minimize tax liabilities.

DEVELOPMENT

According to Ake (2001) Development is thus the process by which people create and recreate themselves and their life circumstances to realize higher levels of civilization by their own choice and values.

It is also a type of social change in which new ideas are introduced into society to produce higher per-capital income and levels of living through more modern production methods and improved social organization.



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