Revenue generation in Nigeria local governments is principally derived from tax. To serve as the third tier of government through #hich appropriate services and, development are made in response to the #ishes of local community through their, &. That amount includes intergovernmental transfers from the federal government but not transfers between state and local governments (which is why the combined total is less than the sum of the separate state and local totals listed below). Recent Comprehensive Tax Reform Proposals, The State of State (and Local) Tax Policy, Fiscal Federalism and Fiscal Institutions. revenue allocation among federal, state and local governments in the country. The logic is that, in areas where the revenue capacity is high, a relative higher tax . Babcock University Press. /MediaBox [0 0 595.32 841.92] /Type /Group Governments should ensure that fee levels cover the costs of services being provided in the majority of cases. How should distributional tables be interpreted? % x- [ 0}y)7ta>jT7@t`q2&6ZL?_yxg)zLU*uSkSeO4?c. R -25 S>Vd`rn~Y&+`;A4 A9 =-tl`;~p Gp| [`L` "AYA+Cb(R, *T2B- What is the history of the federal budget process? /Font << the enabling law in form of local government act 1997 (amended). As a local government leader, you're pressed to keep up with the immediate needs of your community during the COVID-19 crisis. 5 0 obj 11 0 obj << >> Sarah Jindra, Chicagos ticket amnesty program begins today, WGN9, November 10, 2015, wgntv.com. Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in Local government revenue comes from property, sales, and other taxes; charges and fees; and transfers from federal and state governments. /Image8 18 0 R To address this problem, requires proper implementation of plans directed at enhancing adequate revenue generation. Unlocking the full potential of city revenues. Cities should consider the following areas: Collectively, these assessments will help cities to produce a prioritized list of levers for implementation. Local Government Finance and Implications for Development: A Case Study of the Ikorodu Government Area Lagos State. incentive from a state or local government and are encouraged to claim the Advanced Manufacturing Investment Credit, a separate incentive administered by the U.S. Department of the Treasury and the Internal Revenue Service that provides a federal income tax credit for qualifying ca pital investments in a facility for which What are automatic stabilizers and how do they work? 6. US Department of Commerce, Bureau of Economic Analysis. /Meta43 34 0 R /StructParents 7 (*(%8H8c- fd9@6_IjH9(3=DR1%? What is the Highway Trust Fund, and how is it financed? How do taxes affect the economy in the long run? /Tabs /S /Meta77 66 0 R Global Journals Inc. (USA). <]>> n /, another reform of local government #as, established. endobj /CS /DeviceRGB (2022). 2.1.2 Section 81 of the Local Government Act, 1997 (amended) allows Local Government to mobilise revenue in form thof fees and taxes as specified in the 5 schedule. /Contents 67 0 R /CS /DeviceRGB Alao, D. O., & Alao, E. M. (2013). Each time, the city brought in $7 million to $9 million in revenue. Next, cities should perform a thorough gap analysis to define the potential revenue impact for any given stream. Global Journal of Management and Business Research Administration and Management, 13(4), 1226. How did the TCJA change the standard deduction and itemized deductions? /XObject << Dibie, R. A. In 2019 inflation adjusted-dollars, combined state and local general revenue increased from $1.2 trillion in 1977 to $3.5 trillion in 2019, or a 188 percent increase. Local governments received about 32 percent of their general revenue from state government transfers (including indirect federal funds) and 4 percent directly from the federal government. /CS /DeviceRGB /Type /Page /Contents 79 0 R endobj Beyond central government funding, the primary revenue streams for municipal governments are service fees, fines, taxes, and assets such as buildings and properties. What are tax credits and how do they differ from tax deductions? /GS31 30 0 R % trailer /F2 21 0 R What are health reimbursement arrangements and how do they work? endobj /F3 22 0 R >> /S /Transparency What would the tax rate be under a broad-based income tax? Local governments collected $1.7 trillion of general revenue in 2017. How have the sources of revenue for state and local governments changed over time? Predicting Municipal Fiscal Distress: Aspiration or Reality? Charges and taxes. /Meta81 69 0 R >> How might low- and middle-income households be encouraged to save? What types of federal grants are made to state and local governments and how do they work? 15 0 obj /Type /Page Its time to change it,, Author Talks: The worlds longest study of adult development finds the key to happy living, The executives guide to new-business building, Generative AI is here: How tools like ChatGPT could change your business, Smart cities: Digital solutions for a more livable future, Dubai introduces innovation fees for government transactions,. A., & Adewoye, J. O. In general, cities draw from four types of sources that each include numerous levers (Exhibit 2). Urban-Brookings Tax Policy Center. /F5 24 0 R 10 HyTSwoc [5laQIBHADED2mtFOE.c}088GNg9w '0 Jb <> 5/27/2020. Fajobi, O. F. (2010). The usual practice in this country (Nigeria) is that political parties and individual candidates often make #$ e-`w6w . 0000001471 00000 n Impact on economy. endobj For example, the federal government sends K-12 education funds to state governments that then distribute the money to local governments. /Meta51 48 0 R Thus, the 'ocal government cannot embar$, execute, and possibly carryout the maintenance of these pro%ects and other responsibilities, This is the basic reason #hy development is s$eletal at some 'ocal -overnment, councils in Nigeria. (&. /Image87 74 0 R One of the MMDAs involved in the use of recent ICTs to assist revenue mobilization is the AMA. /Type /Page Fines. /Resources << This category involves enhancing internal effectiveness of city teams to generate more revenues without visible impact to the public. Arabian Journal of Business and Management Review (Nigerian Chapter), 1(10), 2435. >> [/ICCBased 11 0 R] endobj It is therefore recommended that these factors that affect administrative functions be addressed; staff salaries should be paid early; the little resources at hand should be utilized in building infrastructural facilities, and the constitutional laws and bye laws should be reviewed for proper understanding of local government autonomy, power and functions as the third tier of government. 0000003920 00000 n 3 0 obj endobj /Type /Page /Meta50 52 0 R Public administration: Theory, analysis and application. stream )U!$5X3/9 ($5j%V*'&*r" (,!!0b;C2( I8/ 3.5 Local government revenue sources by jurisdiction 7 3.6 Local government expenses by purpose 8 3.7 Taxation revenue share by sphere of government and source of revenue 8 3.8 Share of total taxation revenue by sphere of government over time 9 3.9 Vertical fiscal imbalance in Australia 10 4. V)gB0iW8#8w8_QQj@&A)/g>'K t;\ $FZUn(4T%)0C&Zi8bxEB;PAom?W= How do state earned income tax credits work? What are the benefits of return-free filing? >> It should also prepare reports on the performance of various initiatives and their respective owners or entities and update revenues studies based on changing market conditions. /Meta82 68 0 R recommended that the local government should provide basic amenities of high quality. <>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 13 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> /Group << What is the difference between refundable and nonrefundable credits? Some are widely practiced, while others represent emerging and innovative options for city governments to pursue. For example, cities could institute new charges for the disposal of food waste. All dates in sections about revenue reference the fiscal year unless stated otherwise. endobj 203 copies of the questionnaire were administered to staff of Ikorodu local government who were simple randomly selected of which 188 (92.6%) were retrieved while 15 (7.4%) copies were not retrieved. startxref How does the federal budget process work? Developing countries revenue growth is hampered by a . /MediaBox [0 0 595.32 842.04] Los Angeles, for example, charges higher fees for expedited permitting and licensing processes. In 2019, 4 percent of local government general revenue came directly from the federal government (e.g., federal funds for local transportation projects) and 31 percent came from state governments (the numbers do not sum to the total share from intergovernmental transfers because of rounding). Todaro, M. P. (2015). What is the schedule for the federal budget process? <>>> /CS /DeviceRGB /F1 20 0 R /Meta54 51 0 R /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] What is the TCJA base erosion and anti-abuse tax and how does it work? Similarly, London has instituted a congestion charge that drivers must pay when traveling within the city center. >> And these sources tend to be far from optimized: local governments are often unaware of how to get more from existing sources and lack the resources to mount such efforts. 8 0 obj /F2 21 0 R This exercise involves analyzing the citys revenue baseline to determine current revenue generation across all streams and then comparing revenue streams against benchmarks for peer cities to identify any gaps. the federal and state governments in Nigeria to boost revenue generation under a programme known as the Accelerated Revenue Generation (ARG) Programme. To establish this dedicated unit, cities could create a cross-functional workforce with representatives from different departments, including finance, planning, property, legislation, and key municipalities. Revenue sources and economic growth in Nigeria: An appraisal. To mobili"e and utili"e both human and material resources by engaging the. Given state and local tax revenuevolatility resulting from the COVID-19 pandemic, and the large amount of federal transfers approved by Congress, particularly as part of the American Rescue Plan, these numbers will probably look different for fiscal years 2020 and 2021, but Census has not yet published that data. Therefore, the following three areas should be examined: In addition, the city should refer back to the results of the citizen sentiment survey conducted during the preparatory stage to help inform the assessment of social acceptance. /F6 25 0 R 2. /F1 20 0 R >> 9evelopment is highly associated #ith, much revenue is needed to plan, execute and maintain infrastructures and facilities, developmental pro%ects li$e construction of accessible roads, building of public, schools, health care centers, construction of bridges among others are sources, generated from taxes, royalties, haulages, fines and, international governments. %PDF-1.4 % The Political Economy of Colonialism and Nation-Building in Nigeria pp 325343Cite as. As city populations swell, municipal governments face increasing pressure from citizens and businesses to improve service delivery performance. 7. The need for state and local governments to generate adequate revenue from internal sources has therefore become a matter of extreme urgency and importance. (2006). Eneanya, A. N. (2012). 3 0 obj 11. The involvement of leadership as well as all relevant departments and municipalities would help to ensure proper implementation across all levels. /Font << >> /ExtGState << 2 Two Decades in Effect: Volume-Based Waste Fee System in South Korea, Ministry of Environment, South Korea, January 2016. /S /Transparency A 2016 study conducted by the Australia Institute concluded that the Finnish model would yield a 12 percent increase on average in the value of fines issued by five states in Australia. Please email us at: 68% of the world population projected to live in urban areas by 2050, says UN, United Nations Department of Economic and Social Affairs, May 16, 2018, un.org. What policy reforms could simplify the tax code? 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