1.0 Introdcution
The revenue generation and utilization in any local government can hardly be overemphasized. The organization more specially local government is known to have attained or sustained high level of economic growth and development without amply supply of funds and utilization of the establishment people of the locally are use to manage their affairs and achieved the set goals of the council. The above statement explain that local government system are established and expected to perform as well as carryout specific responsibility in improving the living standard of their local dwellers.
1.1 Background Of The Study
Revenue has been considered as a significant issue in the economic development of any nation. It’s importance cannot be over emphasized, be it the federal, state or local government. It serves as a life wire of every business which helps the organization to attain its goals. Revenue is of great importance to national planning and development.
The origin of revenue generation and utilization in the local government started with local government reform of (1976) constitution where local government as established to create impact in the generation of revenue for the development of people in the local government area. This (1976) constitution gave the rural people a sense of belonging in the allocation of “national cake,” since Nigeria constitution provides local government authorities with unique opportunities and challenges to achieve self generation of income for economic growth and development Akpan (1985: 43)
Again, the “1985” Nigeria constitution equally provide that local government authorities should benefits from the federal state government revenue to have these supplemented with their self generation revenue. All the efforts are aimed at making local government viable and self reliant.
These are a total of seven hundred and seventy four (774) local government councils in Nigeria including Imo State which has twenty seven (27) local government councils.
These local government areas are trying to generation enough fund to sustain themselves financially in these covers, these are many hindrance on the way to their success ranging from instability and poor condition of the economy, poorly conflicted road for revenue collection, uncooperative attitude of payee, insufficient industrial units, inadequate supply of social amenities etc. these problems standing against revenue generation government including Owerri municipal as a case study.
These problems have stimulated the researcher to move into a great mission through research in order in set up strategies to achieve these goals.
Poor revenue generation will no doubt prevent the council from rendering good services to the public. The researcher work is therefore set to examine the prospect and problems encountered in revenue generation in Owerri municipal and proper solution.
1.2 Statement Of Problems
It can be observed that revenue generation is an achieve that needs skilled and experienced head in the since that it deals with several dependent and intendment various such as time, energy and labour. Again due to problem of the limited research of the people to satisfy their living very very well; revenue generation becomes difficult.
These problems includes insufficient industrial unit, poorly consisted road for revenue collection, micro- operative attitude of payee, inadequate
1.4 Research Question.
- What impact has revenue generation and utilization in local government system?
- Inadequate revenue generation in local government system does it affect the council
- Is improper revenue generation reflects on the productivity in the local government. Supply of social amenities etc.
Therefore, this research work is design to investigate the various problems associated with revenue in the local government under study and proffer possible solution for efficient generation of revenue in Owerri Municipal.
1.3 Objectives Of The Study
Based on the above, the study is designed to outline the following.
- To x-ray some of the problems militarily against revenue generation in Owerri municipal.
- To see if increase in revenue generation will aid quality income distribution in Owerri municipal.
- To find out if adequately generation revenue will promote economic growth and development of the area.
1.4 Research Question
The study shames through revenue generation in Owerri municipal. Information was based on both primary and secondary data from board of internal revenue department, ministry of financial budgeting and economic planning department. Other loans without Owerri municipals were also covered in order to obtain sufficient information concerning the research work, more especially the revenue collector without this area.
1.7 Limitation Of The Study
Within the period of this work, a lot of hunches where encountered, more especially the revenue collectors within the concern.
It is necessary to highlight in the course of carrying out the research they include.
- Financial contract.
- Tine contract
- Nonchalant alluded of revenue officers.
1.5 Significance Of Study
This research work is of paramount importance Owerri municipal authority and other similar local government areas because of the role of financial the organization and institutions.
The work will help to advice the researcher knowledge and enable him contributes in finding solution to the problem for which the research is based. The work will also enable to determine the possible course of failure in revenue generation and hereby guiding the government on the steps to take in solving them it will also be of immense benefit to the local government if it takes the findings and recommendations of this research into consideration when making polices and decision concerning revenue generation. This work will be a reference document or further research.
Finally, the research will contribute to the stock of knowledge and stimulate further research into the student matter by students and lecture in the family of and management sciences.
1.9 Definition Of Terms
Good research either demands that terms should be defined in right sense where they are used to remove any ambiguous measuring in pursuant of this relief; the following terms are defined as they are used in the study.
Revenue:
This is defined as an income of the local government defined from taxes and other sources.
Taxation:
This is defined as a compulsory payment made by individual, corporate bodies or institutions to government at institutions to government at internal for its substance.
Internal revenue:
Those revenue generations with in the local government in a given, period.
External revenue:
Are that revenue generate in a given e.g statutory, allocation from the federation account.
Personal income tax:
This is tax which is imposed on individual’s wages, salaries and other earning it is usually progressive. It is also sum total of compulsory payment to government by citizens of certain percentage usually a year.
Statutory allocation:
This is the mechanism for the country financial resources among the different tiers of government in the federation with the overall objectives of enhancing economic growth and development, minizing inter- government tension and promoting national unity Nworji (2004: 120).
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