The inability of states and local governments in nigeria to generate enough revenue to cope with their expenditure responsibilities has been a serious challenge. To examine the extent internally generated revenue significantly affect state government total revenue. With the lingering economic struggles, there have been renewed calls for the nigerian government to diversify the economy away from the oil and gas sector. The importance, how to, effect causes relationship, comparison, history, role, solutions are discussed. Tax automationcomputerization will equally make tax filling and. Abstract local government is faced with varieties of difficulties to source adequate revenue from federal government, state government and internally generated. To find out if lack of financial autonomy constitutes a problem to internally generated revenue in njikoka local government. Tax revenue structure and its effect on economic growth. Internally generated revenue are those revenues that are derived within the state from various. It seeks to find out the extent to which the introduction of the dacf has influenced local revenue generation capacities of the district assemblies.
An assessment of internally generated revenue on local. The main aim and objectives of the study the main aim of this study is to ascertain the sources of internally generated revenue for asa local government area of kwara state and the extent to which the resources have been used for. Its impact on government developmental effort a study of selected local council in kogi east senatorial district edogbanya, adejoh. Findings showed that etaxation can enhance internally generated revenue and can reduce the issue of tax evasion. In other to facilitate the above statement, the state. Lawal 2000, ezeh 2000, tonwe 2008 but none has been written on impact of internally generated revenue on community development in asa local government area of kwara state. Monies collected by a government through imposition of levies and taxes on facilities, incomes, sale of goods and services. Analysis of internally generated revenue and its implications on fiscal viability of state governments in nigeria. Effective revenue mobilisation by districts assemblies. Improved internally generated revenue and sustainable budget. In 1985, the states proportion was reduced to 10 percent of the internallygenerated revenue, local. Since then, oil has constituted the bulk of public generated revenue, export earnings and. The purpose of the study was mainly to identify the major sources and utilization of internally generated financial revenue by nigerian university. The results also revealed that, the tax evasion has adverse effect on government revenue generation in oyo state which typically results in revenue loss.
This is to say that, internally generated revenue igr. The various sources of internal revenue available to state governments includes taxes, fines and fees. Internally generated revenue igr and infrastructural. All these factors to a large extent strangulated the lg form effective service delivery ibok, 2014 and abada, 2007. The purpose of this study is to analyze the impact of internally generated revenue on the infrastructural development of public universities in ondo state. The average percentages of internally generated revenue in relation to the federal allocation were between 59 percent for. Fiscal federalism, governance and internally generated revenue.
This is because the state as the second tier of government needs revenue to provide basic social amenities to the people. Introduction internally generated revenue igr is the revenue that state governments generate within the areas of their jurisdiction. To examine the factors undermining effective revenue mobilization. Most institutions rely on institutional revenues to be made available to the libraries at appropriate and available period. Introduction worldwide, it is generally held that all stakeholders in education, including governments, individuals and communities expect schools at all levels to produce educated persons for. It is worthy to mention that in whatever way revenue is defined or classified, the central theme is the role that it. This paper assesses the impact of the dacf on internally generated revenue mobilisation.
This study assessed the effects of internally generated revenue on infrastructural development in akwa ibom state. Effect of internally generated revenue on infrastructural. The objective of this study was to examine the significant difference between the effects of oil and non oil tax revenue on economic growth in nigeria. Tax is a compulsory levy imposed by government on individuals and companies for the various legitimate function of the state olaoye, 2008. Tax revenue generated by the federal government of nigeria and tax revenue generated by some selected states were obtained in order to assess the impact of taxation on revenue generation by the federal government of nigeria and by some selected states in nigeria from 20022011. The average percentages of internally generated revenue in relation to the federal allocation were between 59 percent for most nonoil producing states in the recent past. Impact of internally generated revenue on performance of. The impact of internally generated revenue on economic development in nigeria article pdf available march 2018 with 3,099 reads how we measure reads.
This study assessed, in empirical terms, the roles that internally generated revenues play in the administration of state governments in nigeria, using ogun state in the south western part of the country, as case study. This paper assesses the impact of the dacf on internallygenerated revenue mobilisation. Forrester took a multistep approach to evaluate the impact that adobe sign can have on an organization. Internally generated revenue igr may be in the form of education counterpart funding scheme ecfs which serves to fund the university system apart from the statutory grant that is received from the government. With the lingering economic struggles, there have been renewed calls for the nigerian government to diversify the economy away from the oil. The impact of local government internally generated revenue on community development in nigeria abstract the impact of local government internally revenue is likely to be felt by the people in the community in the sense that, all development in the community area are been carried out by the local government of the community. Research questions in order to achieve the objectives of the study, the following research questions were posed for the appropriate answers. Developing internally generated revenue in an era of. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. Impact of internally generated revenue in development of. Erhagbe 2014 states that igr is the creation of tangible and intangible funds within the confines of ones entity. Pdf the impact of internally generated revenue on economic. The effect of internally generated revenue on economic growth 20102014 chapter one introduction background of the study revenue generation in nigeria local governments is principally derived from tax.
Internally generated revenues igr are revenues generated by states within the nigerian federation, independent of their share of revenue from the federation account. Internally generated revenue igr is that revenue that is derived within a state or local government from various sources at its disposals. Developing internally generated revenue in an era of diversification. An empirical study carried out by ehule 2015 on the impact of internally generated revenue on the performance of a public sector, reveals that permits and rates have significant positive impact on performance. Edogbonya 20 studied the impact of revenue generation on. Internally generated revenue igr and effectiveness of. To proffer solution to the problem of poor internal revenue generation. From the above empirical studies, the researcher believes that proper tax data or database if put in place, will enhance revenue generation among smes in nigeria.
Pdf this study assessed, in empirical terms, the roles that internally generated revenues play in the administration of state governments in. The sources for state igr include taxes pay as you earn, capital gain tax, withholding tax, etc. This study investigated the impact of internally generated revenue on the. This is because the state as the second tier of government needs revenue to provide basic social amenities to. The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. However, internally generated revenue which is a stable revenue source has been neglected due to overdependence on statutory allocation from the federation account. Tax compliance barriers and internally generated revenue. Impact of etaxation on nigerias revenue and economic. Examining weak subnational finances in nigerian states chukwuma agu african institute for applied economics,enugu, nigeria abstract one of the most crucial challenges to nigerias ailing fiscal federalism is the inability of states to raise, retain and manage revenue.
The exportation of oil in from the first quarter of the 70s shifted the revenue base in favour of oil odusola, 2006, iyoha, 2003. What are the impacts of poor revenue generation on the development of lagos state. Local governments in nigeria receive statutory allocations from the two higher tiers of government federal and states. An increase in the capacity of an economy to produce goods and services, compared from one period of time to another. This study was designed to investigate the tax revenue and nigerian economic growth for period of three decade, using time series data from 1986 to 2015. Per capital income is the total national income divided by. Governments should upgrade their methods of internal generated revenue collection from manual to digital. Akpa, 2004 opines that, most of the 774 local councils today depend heavily on the statutory allocations for survival as no less than 80 percent of the total revenue comes from this source. Identify the reasons for the inadequacy of internally generated fund of ccma. This is approved for students in accountancy business computer science economics engineering arts. The study revealed that revenue base has a significant impact on the creation of social assets. The objective of this study was to examine the significant difference between the effects of. To examine the relationship between value added tax and revenue generation in nigeria to establish the effects of value added tax on revenue generation in nigeria 1.
The improper use of igr and corruption have remained a setback to. Provision of funds for the academic libraries has been one of the challenges to adequate availability of information resources. The impact of internally generated revenue on economic. At the present, revenue sharing formula, local governments receive 20 per cent from the federation account. To determine what accounts for the inability of revenue collectors to collect internally generated revenue in njikoka local government. Psigrj proportion of states internally generated revenue in year j. Internally generated revenue is one of the ways through which nigeria, particularly the. Impact of internally generated revenue igr on the growth. Pdf the study investigated the impact of internally generated revenue igr on economic development of nigeria. Introduction worldwide, it is generally held that all stakeholders in education, including governments, individuals and communities expect schools at all levels to produce educated persons for national and individual development. The general objective is to examine how the upper denkyira east municipal assembly can improve the mobilization of its internally generated fund. The emerging results, established that increase in revenue from the federal and state government would exert positive effect on the gross domestic product gdp, whilst increase in internally generated revenue. This study is based on the evaluation of ebonyi state tax system as a major source of revenue generation with emphasis on impact of taxation on the internally generated revenue of ebonyi state, the researcher made use of ebonyi state board of internal revenue, abakaliki, professional accountants, civil servants and the public from various walks.
This refers also to the grand total of money of income received from the source of which expenses are incurred. The study investigated the impact of internally generated revenue igr on economic development of nigeria. The impact of effective internal control on the revenue generation of local government councils with abstract, chapter 15. Identify the impact of existing strategies on its revenue mobilisation. Optimising internally generated revenue in nigeria 3 3 e introduction this paper a leap deliverable has been commissioned to provide a contextual study of factors linked to effective internally generated tax development5, in line with leaps objective to promote the generation and use of evidence on key public sector reform policy questions. Revenue generation and local government administration in. They are also statutorily entitled to 10 per cent of states internally generated revenue. To assess the sources of revenue to the upper denkyira east municipal assembly 2. The general objective of this study is to examine the impacts of value added tax on revenue generation in nigeria. The bloated personnel structure has to a large extent expanded the financial burden of the lg though it may be.
More worrisome are the effects of these government actions as economic implications are. This study examined the impact of etaxation on nigerias revenue and economic growth. In 1931, the national assembly fixed these proportions at 10percent of the federation account and 10 percent of the total revenue of a state. The major purpose of this study is to examine effective tax administration and its impact of internally generated revenue of states in nigeria. Get free research paper on evaluation of internally generated revenue and economic growth of kano state from 19992014 project topics and materials in nigeria. Public revenue could be defined as the revenue or funds generated by the government internally to finance government activities. The impact of effective internal control on the revenue. Impact of internally generated revenue on performance of local. Pdf analysis of internally generated revenue and its. Revenue generation is the nucleus and the path to modern development. The study established that vat is a consumption tax on economic operations including imports. The ones which the local government generates by itself is regard as internally generated revenue, while those that comes from either the state on the federal government or.
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