CHAPTER ONE
Several definitions have been given to local government by various scholars. In most cases, these scholars defined local government as a political entity.
Leo and Anthony (1989) defined local government as subordinate unit of administration and vest in them the authority to perform local function.
Awolowo (1989) also defined local government as a system of government where in local council accepts responsibility for and implements their own decision subject to such control as may be exercised by the people through their own regional government.
The guidelines for local government reform (2000) defined local government as government of local level exercised through representative council, established by law to exercise specific power within defied areas.
In the year 2001, they also defined local government as a political sub-division of a nation or state which is constituted by law and has substantial control of local affairs including the power to impose tax or to exert labour for prescribed purpose.
From the above definition, one can deduce that local government is the unit of government administration at local level below state. It is a device from local expression to purely opinion with the aim of the country. Also, in the hierarchy of government, federal and state is expected to perform several functions such as the provision of social services like education, health, water supply, construction of road, general administration, e.t.c. local government has to generate revenue in order to finance or carried out the function above, among the ways of generating revenue are as follows:
Therefore, generation of revenue is very important for local government to finance their numerous functions. It should be noted that this study set out to examine not only the revenue sources a available to local government; it also intends to examine the problem encountered, management of revenue generated and possible solution to the problems.
Hopefully, the study will serve as sources of correcting those problems.
The local government is faced with myriads of problems ranging from corruption and embezzlement, poor financing, management of funds to poor leadership. This has deterred the development of local government in Nigeria.
The major issues are: What has contributed to the non performance, is it because of total dependence on federal and state statutory allocation? Is it as a result of ineffective utilization of available scarce resources or mismanagerial by public office holders? Is it as a result of poor internally generated revenue drive? Among others, certain percentage of the statutory allocation has always been deducted by the state government, thereby causing the local government to underperform which include:
Base on the above stated problems, it has become necessary to conduct an analysis on the problem and prospect of generation and management of revenue in Nigeria.
It is evident that the provision of social amenities in our society is solely the task of the government, not only the executive of the project but also the favouration of policies to ensure an effective application of the researcher. These desire objectives have not been accomplished for some obvious research.
Therefore, this research work will initiate a researcher for better policies formulation approach and prudent application of the limited available resources for the betterment of the citizens.
Also, it will make local government to be sure whether proper they are managing their revenue section and financial resources properly. As the loopholes will be expected, this is with a view to take corrective measures.
The study would appraise the revenue generation for the period of five year (2009-2013) in three local governments in kwara State, East Senatorial district. The research is intended to be carried out using secondary data.
Secondary data will be obtained from the monthly allocation from the office of Accountant general of Kwara State.
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LIMITATION OF STUDY
This study has some limitation, most especially in the area of data collection which is to be covered and has time duration of five years (i.e. 2009-2013).
Financial constraints as well as time available for the completion of the study are among other factors that would limit the scope of the study.
DEFINITION OF TERMS
REVENUE: Government revenue can be viewed as a generic form for all monetary receipt accruing to government from both tax and non-tax sources.
TAXATION: As a process of levying and collection of tax from person or body of person by a public authority with proper jurisdiction.
TAX: It can be defined as a compulsory contribution from a person to the government imposed by the public authority irrespective of the exacts amount of service rendered by public.
LEVY: It is another form of tax and a compulsory contribution collected from person.
LOOPHOLE: On the law, it is small mistake of omission which allows you to avoid doing something that the law intends you to do.
PAYER: It is a system of removing tax in which your employers subtract your tax from your salary or wages and then pay of directly to the government.
P.A.Y.E: Is the abbreviation of pay as you earn
VOUCHER: Is a piece of paper that can be used instead of money to pay for something.
TAX EVASION: It is crime of not paying the full amount of that you should.
GRANT AND AIDS GRANT: Is an amount that the government gives to a person or an organization for a particular purpose such as education or home improvements.
AIDS: Is money equipment or services that are provided for people in need.