local government revenue generation pdf

Beyond central government funding, the primary revenue streams for municipal governments are service fees, fines, taxes, and assets such as buildings and properties. 9. What are state balanced budget requirements and how do they work? Revenue from property, sales, and other taxes totaled $707 billion, or 42 percent of general revenue. (2006). %PDF-1.5 /MediaBox [0 0 595.32 842.04] /MediaBox [0 0 595.32 842.04] Subscribed to {PRACTICE_NAME} email alerts. How have the sources of revenue for state and local governments changed over time? You may be shifting priorities daily in order to address the effects of the crisis on your constituents. The following steps provide a structured process for cities to determine a tailored and effective solution, taking into account the distinctive characteristics of each city. share. 8 0 obj <>/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>> 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. << 0v=.7&YP ?SfqZBEFowu8-RmHaav,Ax5dT# Small Business Effect: Potential meaningful. /Meta65 57 0 R /StructParents 3 The final 32 percent of state general revenue came from intergovernmental transfers. /Type /Page /Image91 75 0 R How would the tax system need to change with return-free filing? 6 0 obj Something went wrong. /CS /DeviceRGB 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 is global intangible low-taxed income and how is it taxed under the TCJA? The need for state and local governments to generate adequate revenue from internal sources has therefore become a matter of extreme urgency and importance. endstream /F7 42 0 R <>>> /F3 22 0 R . This research work examines how the federal Government of Nigeria generate revenue and the development of Local Government Areas, Revenue Generation and the Development of Local Government Areas, 100% found this document useful (8 votes), 100% found this document useful, Mark this document as useful, 0% found this document not useful, Mark this document as not useful, Save Revenue Generation and the Development of Local Go For Later. endobj Financial management in Nigerian local government. /Font << /Parent 2 0 R % 6. Meanwhile, individual income taxes have also increased as a percentage of state and local general revenue, providing 10 percent in 1977 and 13 percent in 2019. Charges and miscellaneous fees, such as water, sewerage, and parking meter fees collected by municipal or county governments, provided $385 billion (23 percent of local general revenue). /F3 22 0 R /Contents 79 0 R All revenue data are from the US Census Bureaus Annual Survey of State Government Tax Collections. Optimizing land monetization has the potential to double baseline revenue from income-generating assets. INTRODUCTION Nigeria is a sovereign nation. 7 Innovation is poverty reduction: The role of local government. US Census Bureau. /MediaBox [0 0 595.32 842.04] Miscellaneous sources, such as special assessments, provided 7 percent of state general revenue. US Department of Commerce, Bureau of Economic Analysis. 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. What are tax credits and how do they differ from tax deductions? <> /Tabs /S Revenue generation in Nigeria local governments is principally derived from TAX. /Group << >> /Type /Group /Image20 81 0 R Annual Survey of State and Local Government Finances. It operates a federal system of government that is, . 4 0 obj /Image97 76 0 R This intervention is typically applicable to any paper-based transactions or services, such as business license fees, construction permit fees, or land registration fees. To meet rising expectations for service delivery amid tight budgets, municipal governments must increase revenues from existing sources as well as create new revenue streams. What is the difference between a tax-exclusive and tax-inclusive sales tax rate? /F7 26 0 R Furthermore, technological advancements can aid increased surveillance. 2 0 obj Since development demands a lot of capital, this study will critically analyze the relationship between local government finance system i.e. 4 0 obj It also excludes revenues from government's "business-like" activities such as water, gas, electricity, and transit utilities; government-run liquor stores; and government-administered insurance trusts such as employee retirement, unemployment compensation, and workers compensation systems. /F2 83 0 R If you would like information about this content we will be happy to work with you. "F$H:R!zFQd?r9\A&GrQhE]a4zBgE#H *B=0HIpp0MxJ$D1D, VKYdE"EI2EBGt4MzNr!YK ?%_&#(0J:EAiQ(()WT6U@P+!~mDe!hh/']B/?a0nhF!X8kc&5S6lIa2cKMA!E#dV(kel }}Cq9 /Contents [14 0 R 15 0 R 16 0 R] What tax incentives exist for higher education? /CS /DeviceRGB Each time, the city brought in $7 million to $9 million in revenue. Eneanya, A. N. (2012). /Count 10 /Image8 18 0 R /S /Transparency Lucy Dadayan and Kim Rueben (2021), More Than Fines and Fees: Incorporating Equity into City Revenue Strategies /Image87 74 0 R /F1 20 0 R for generating additional revenues. /Type /Group (eds) The Political Economy of Colonialism and Nation-Building in Nigeria. /F2 21 0 R endobj What are dynamic scoring and dynamic analysis? What would and would not be taxed under a VAT? /Group << /Meta25 33 0 R /Tabs /S What would the tax rate be under a broad-based income tax? >> /Annots [86 0 R 87 0 R 88 0 R 89 0 R] As such, federal transfers as a share of state general revenue will likely look different for these yearsbut Census has not yet published that data. 9 Government and to the State Governments. Much of the change in local government revenue relative to the economy resulted from increasing and decreasing transfers from federal and state governments. <>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 11 0 R 16 0 R 19 0 R 22 0 R 23 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> What are defined contribution retirement plans? >> Fajobi, O. F. (2010). <> /StructParents 9 /Font << What is the difference between carryover basis and a step-up in basis? /Resources << OECD fiscal decentralization database (object name Table 12: 1970 2016), OECD, accessed April 15, 2019, oecd.org. endobj Indeed, each citys situation is inherently different and will require a unique combination of interventions and careful consideration to ensure the program is both economically and politically feasible. /Annots [27 0 R 28 0 R] 8 /StructParents 8 In contrast, revenues from charges steadily increased from 11 percent of general revenuein 1977 to 17 percent in 2019. % Okwori, J., & Sule, A. University Press. (*(%8H8c- fd9@6_IjH9(3=DR1%? In so doing, they impose some taxes and rates on these economic activities as a way of generating funds for their How do the estate, gift, and generation-skipping transfer taxes work? /Resources << <> What are health reimbursement arrangements and how do they work? The revenue systems of these governments eroded while the workloads and scope on the expenditure side of the state and local system budget . /F5 40 0 R /Type /Page Abstract and Figures This paper examines trends in local government revenues and current challenges that local governments face in raising revenue. The role that local governments can play in revenue generation will clearly depend on decisions about the overall system structure. Ayodele, I. O., & Sunday, A. E. (2009). Google Scholar. endobj Do existing tax incentives increase homeownership? >> /Group << Transfers for education programs account for over two-thirds of state government transfers to localities. Chapter One of Revenue Generation in Local Government Areas (Problems and Prospects) INTRODUCTION: BACKGROUND OF THE STUDY: Nigeria has three- tiers of government systems, These are; (i) The federal government (ii) The state government and (iii) The local government. >> Urban-Brookings Tax Policy Center. 3.16.1 Introduction. #$ e-`w6w /Contents 80 0 R What criticisms are levied against standard distributional analysis? (2011). endobj 2018. /Type /Group endobj Keywords: Local Government, Federalism, Revenue Allocation and Fiscal Federalism 1. How do flexible spending accounts for health care expenses work? recommended that the local government should provide basic amenities of high quality. G$\0#?; /Parent 2 0 R Governments, with input from citizens, must decide how to manage risks /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] >> The Federal government appointed Consultants/ Monitoring agents on Value Added Tax (VAT) and Withholding Tax (WHT) in the Oil Industry. 1 0 obj This is a preview of subscription content, access via your institution. For cities and counties, property tax revenue makes up 61% of own-source tax revenuerevenue from taxes the local government leviesby far their largest tax source. /Type /Page 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. How Could We Improve the Federal Tax System? /GS7 17 0 R As a result, local governments are continually forced to levying of non-property taxes and fees (Steiss et al, 2011,). What are the major federal payroll taxes, and how much money do they raise? Cameron Amos and Jesper Lindqvist, Finlands fine example, The Australia Institute, January 2016, tai.org.au. Another 6percent of localgeneral revenue came from miscellaneous sources such as amounts received from the sale of property and interest from some investment securities. 14 0 obj istorically, the development of direct taxation in local, government in Nigeria can be traced to the )ritish pre*colonial period under this, Recently the revenue that accrues to local government is derived from t#o broad. /F2 21 0 R These meetings serve as a way to monitor progress and enable proper implementation. Alao, D. O., & Alao, E. M. (2013). Meanwhile, housing-program transfers are about 40 percent of federal transfers to local governments. /Group << What are the tax benefits of homeownership? With initial adjustments for relevance and size of potential revenue impact, cities can select the most promising streams as revenue generators. All other taxesincluding corporate income taxes, hotel taxes, and business license taxesprovided $40 billion in revenue (2 percent). /Meta44 31 0 R International Journal of Economics, Commerce and Management, 3(6), pp. >> << How did the TCJA affect incentives for charitable giving? For example, the federal government sends K-12 education funds to state governments that then distribute the money to local governments. essential social services to the people. /Meta64 58 0 R 2 0 obj How are different consumption taxes related? responsibilities in the federation. 8. << /S /Transparency /CS /DeviceRGB /Contents 56 0 R /Meta54 51 0 R /Resources << /GS7 17 0 R /Meta39 39 0 R /Type /Group Cities can also raise revenues by increasing the number of transactions through various approaches. /Contents 64 0 R How does the tax exclusion for employer-sponsored health insurance work? Accessed 18 July 2016. Local governments collected $1.7 trillion of general revenue in 2017. In the last 10 years, Illinois has reduced the portion of income tax returned to cities and towns. /Type /Group Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in Longman. /Meta57 46 0 R Wendthat,incitieswherearelativelyhighershareofrevenueiscollectedthrough nes, fees, and asset forfeitures, violent crimes are cleared at a relatively lower rate, 3 <>stream 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. The challenge of local government financing in developing countries Each time, the city brought in $7 million to $9 million in revenue. However, the state government transfer total includes indirect federal funds that are initially allocated to states. /Parent 2 0 R Lack of proper provision and maintenance of social amenities, lack of well-trained staff especially revenue staff and so on are some of the results of lack of proper funding of local government in Nigeria. How should distributional tables be interpreted? 15 0 obj endobj /F2 21 0 R International Journal of Arts and Humanities Bahir Dar, Ethiopia, 2(3), S/No. >> r_ w=[,()l9"] JETfKIXpEq)h5-B(3+r;&uJ_=~_9=0 %%EOF What are the sources of revenue for state governments? Revenue sources and economic growth in Nigeria: An appraisal. 3 Taxes, fees, and user charges are considered "own-source" revenue. 2023 Springer Nature Switzerland AG. What types of nonemployer-sponsored retirement savings accounts are available? 1. /Meta50 52 0 R Dubai instituted a knowledge dirham, a flat charge that applies to all government services. %PDF-1.5 In 2020 and 2021, Congress transferred a large amount of funds to state governments as part of the CARES Act, the Coronavirus Response and Relief Supplemental Appropriations Act (part of the December 2020 omnibus bill), and the American Rescue Plan. 9evelopment is highly associated #ith, much revenue is needed to plan, execute and maintain infrastructures and facilities, developmental pro%ects li$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. Li'}4I>A7i3;g f>dm,orW6XCid&ntGMhJ^ur!y]j]V CWD.6Eh.\Z35 =+`=+Zj:8l?3ZbS8h._=mp,:bx+2r&^N J'%3U4oHnkb~u*k.[pg /Tabs /S Elected officials have four primary revenue sources, each containing multiple levers. /F9 55 0 R /Meta56 45 0 R Emerging countries and regions will see the greatest increase in their urban populations, and China, India, and Nigeria represent slightly more than a third of the projected growth in that time frame. What did the 200810 tax stimulus acts do? Form 2, or on the appropriate line on Nebraska and Local Sales and Use Tax Return, Form 10 . New York, Scribner Press in Institute of Management and Leadership Professional Nigeria (2012). PubMedGoogle Scholar, Insitute of African Studies, Carleton University, Ottawa, Canada, 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG, Ntiwunka, G., Ayodele, T.M. Local tax limitations: a primer Property taxes . The history of man has sho#n that, No system or rules can be effective #heth, er foreign or nature unless it en%oys some, measures of financial independence. What does it mean for a government program to be off-budget? /Meta82 68 0 R 2 0 obj How does the tax system subsidize child care expenses? What is the new markets tax credit, and how does it work? And as the new normal begins to take shape, you'll also have to plan for the near- and long . 10 0 obj Department of Political Science and Public Administration, PMB 4010, Babcock University, Ilishan-Remo, Ogun, Nigeria, You can also search for this author in Essentials of management. What are error rates for refundable credits and what causes them? 2 0 obj Similarly, London has instituted a congestion charge that drivers must pay when traveling within the city center. /Tabs /S /Resources << This approach has the potential to not only fairly penalize offenders and reduce instances of speeding but also to generate more revenue. Local governments include county governments, municipalities, townships, special districts (such as water and sewage authorities), and school districts. /F2 21 0 R And what is feasible to achieve? /Parent 2 0 R simply because of poor finances arising from ade8uate revenue generation drive. /Resources << Cities that want to implement new charges will be more likely to build public support if such measures both induce positive behavior and have a clear, equitable, and risk-averse public benefit. Charges and taxes. How might low- and middle-income households be encouraged to save? endobj >> 5366 0 obj<>stream 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- >> /MediaBox [0 0 595.32 842.04] >> /XObject << endstream %PDF-1.4 1 0 obj Financing Local Governments: Exploiting the potential of local revenue Introduction Local governments are constitutionally empowered to control, regulate and also raise revenues from activities in their jurisdiction. The Political Economy of Colonialism and Nation-Building in Nigeria, https://doi.org/10.1007/978-3-030-73875-4_17, Shipping restrictions may apply, check to see if you are impacted, https://www.odi.org/events/282-innovations-poverty-reduction-role-local-government, Political Science and International Studies, Political Science and International Studies (R0), Tax calculation will be finalised during checkout. This was localities largest single source of tax revenue. /Font << What is the role of monetary policy in alleviating economic downturns? endobj This category involves enhancing internal effectiveness of city teams to generate more revenues without visible impact to the public. Impact on economy. /F2 21 0 R 0000001743 00000 n /F7 42 0 R /F5 24 0 R /F1 20 0 R We also look into the future in an. /Meta77 66 0 R n3kGz=[==B0FX'+tG,}/Hh8mW2p[AiAN#8$X?AKHI{!7. <> 11 0 obj What is the difference between zero rating and exempting a good in the VAT? >> /Pages 2 0 R /Meta37 37 0 R Cities use fines as both a deterrent for behavior at odds with the public goodfor example, the accumulation and nondisposal of garbage or building construction without a temporary fenceand a revenue source. /F1 20 0 R It is very important especially for developing countries because in developing . GRIN Verlag. 7 0 obj Service fees. >> /CS /DeviceRGB When renegotiating existing leases, several levers can be utilized, such as increasing allowable floor-to-area ratio (FAR), collecting penalties for violations, amending contract duration and payment terms, and modifying plot use. What is the experience of other countries with national retail sales taxes? It is as easy to achieve fiscal decentralization under a unitary system of government as under a federal system. Arabian Journal of Business and Management Review (Nigerian Chapter), 1(10), 2435. Revenue generation is the main source of income to the Federal, State and local Governments. 9 0 obj 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. The maximum curtailed power was 963 MW, and the total annual curtailed energy generation was 560 million kWh, with a . /MediaBox [0 0 595.32 842.04]

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