ABSTRACT
Revenue generation is the nucleus and the path to
modern development. Thus, the study was to assess the role of local government
internal revenue generation as it promotes socio-economic development. This is
because local government as the third tier of government and the closest to the
people especially in the rural areas needed internal revenue to provide basic
social amenities to the people. But it is unfortunate to note that the local
government management have not lived up to expectation especially to provide
basic social amenities to the rural people. Thus, the objective of the research
was to analyze the extent to which internal revenue generation had promoted
socio-economic development of those areas. The researcher used primary and
secondary methods of data collection to generate the needed data. The data
obtained through questionnaire was presented in tables and expressed in simple
percentages. The following were some of the findings which included inadequate
socio-economic development of the areas, lack of basic social amenities to the
rural people and lack of revenue to maintain the existing infrastructures. The
researcher therefore recommended that the local government should provide basic
amenities of high quality. By doing so, the people’s interest would be geared
towards giving their maximum support to the local government which would lead
to the socio-economic development of the rural area.
CHAPTER
1.1 BACKGROUND OF THE STUDY
Development is a sine qua non for
modern civilization. In a crusade and struggle to carryout development at all
nooks and crannies of the society, the local government as the tier of
government that is nearest to the people is saddled with the responsibility of
direct development of the people to a certain level.
Development is highly associated with
fund, much revenue is needed to plan, execute and maintain infrastructures and
facilities at the local government level. The needed revenue generated for such
developmental projects. Like construction of accessible roads, building of
public schools, health care centers, construction of bridges among others are
soles generated from taxes, royalties, haulages, fines and grants from states,
national and international governments.
Thus, the Local government cannot
embark, execute and possibly carryout the maintenance of these projects and
other responsibilities without adequate revenue generation.
This is the basic reason why
development is skeletal at some Local Government councils in Nigeria. However,
adequate internal revenue generation local government will help promotes the
socio economic development. This study will look examine how internal revenue generation
can promote socio – economic development of Ivo Local Government Area of Ebonyi
State.
1.2 STATEMENT OF THE PROBLEM
The Local Government Council take
direct care of the grassroots people, that is the people in the rural areas.
This group of people sometimes lack essential facilities and condition of modern
civilization. They lack pipe bore water to drink, do not have electricity, accessible
roads, poor educational infrastructure and facilities to mention but a few.
This is one of the major reasons of
rural – urban migration of movement. This has made our cities to be congested
and increase in many criminal activities. Based on the above and foregoing
assertions, it is obivious that the impact of poor revenue generation on the development
of the rural area is a serious problem. This might be as a result of poor
revenue generation. If
is to achieve her desired goal of vision 2020 and possibly meet the millennium
development goals (MDGS) target, the issue of revenue generation must be
addressed squarely.
Hence, the research will examine the
extent to which internal revenue can promote socio-economic development of Ivo Local
Government Area of Ebonyi State.
1.3 PURPOSE/OBJECTIVE OF THE
STUDY
The broad objective of the research
is to evaluate the impact created by internal revenue on the development of Ivo
LGA in Ebonyi State.
The other objective of this study
includes:
i.
To
determine the level of modern social amenities available in Ivo LGA
ii.
To
find out the living standard associated with the rural people as a result of socio
economic development
iii.
To
find out the degree of rural-urban migration.
iv.
To
make useful suggestions that can improve internal revenue generation of local
government which can promote the socio economic development
1.4 RESEARCH QUESTIONS
i. What are the roles of internal revenue of
local government on the promotion of socio economic development of Ivo LGA?
ii. Are there adequate modern social
amenities in Ivo LGA?
iii.
How
has the living standard of the rural people improved as a result of socio
economic development?
iv.
Has
there been rural-urban migration with the level of socio economic development
in Ivo LGA?
v.
How
can internal revenue in Ivo be improved?
1.5 SIGNIFICANCE OF THE STUDY
The significance
of any human endeavour is measured by its relevance to solving human problems.
The findings of this study would help Ivo Local Government to identify the extent
to which internal revenue generation can promote socio-economic development.
1.6 SCOPE DELIMITATION
The study is focused on the role of internal
revenue generation and how it affects socio economic development of the local government
areas. It will also involve the analysis of problems associated with internal revenue
generation and its impact on the socio economic development of Ivo Local
Government.
1.7 LIMITATION OF THE STUDY
The researcher was constraint by time
as time frame for the submission of this research was short for an expansive
research.
The researcher equally encountered financial
limitation as lack of sponsorship from corporate bodies thus; the researcher’s
little resources could not cover more areas.
The willingness of most local government
staff to supply the needed data was another major problem.
1.8 DEFINITION OF TERMS
Some concepts require proper explanation
to enhance our understanding of the theme where necessary opinion of scholars
will be cited to explain the terms. The researcher will also give some fundamental
definition of terms.
LOCAL GOVERNMENT
According to Lawal (2000) Local
Government as a political sub-division of a nation in Federal system which is
constituted by law and has substantial control of local affairs which includes the
power to impose taxes or exact labor for prescribed purpose.
According
to William Robson (2006) Defined Local Government as involving the conception of
territorial, non-sovereign community possessing the legal right and the
necessary organization to regulate its own affairs.
REVENUE
Public revenue could be defined as the
funds generated by the government to finance its activities. In other words revenue
is the total fund generated by government (Federal, state, local government/ to
meet their expenditure for a fiscal year.
This
refers also to the grand total of money of income received from the source of
which expenses are incurred. Revenue could be internal or external revenue.
GENERATION
This is the process of sourcing revenue
for the local government in carryout their aim and objectives.
EXPENDITURE
Public
expenditure refers to the expenses which the government incurs for its own maintenance,
in the interest of the society and the economy in order to help other countries.
TAX
Tax
can be defined as a compulsory levy by government on goods, services, income and
wealth. It provides definite source of revenue for government expenditure.
(Udeh O.S. 2008)
It
is the way by which government obtain extra money. It spent from income of
individual and companies. Tax could be direct or indirect tax. A tax is a payment
made by the taxpayers and used by the government for the benefits of all the
citizens.
TAX EVASION
Tax
evasion means illegal reduction in one’s tax liabilities, thereby paying less than
the appropriate amounts and not paying at all.
TAX AVOIDANCE
Tax
avoidance is the act of streamlining one’s financial affairs within the law so
as to minimize the tax liabilities.
DEVELOPMENT
According to Ake (2001) Development is
thus the process by which people create and recreate themselves and their life
circumstances to realize higher levels of civilization in accordance with their
own choice and values.
It
also a type of social change in which new ideas are introduces into a social in
order to produce higher per-capital income and levels of living through more
modern production methods and improved social organization.