CHAPTER ONE
INTRODUCTION
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 and 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. The issue of poor revenue generation is not exceptional to local government in Edo State. This has been one of the problems encountered by Uhumwonde Local Government Area.
This however pronouncedly affected development negatively in local government councils. In this research project, the issue to address is how far this poor revenue generation can affect development especially in Uhumwonde Local Government Area.
1.2 STATEMENT OF THE PROBLEM
The Local Government Council takes direct care of the grassroots people in the rural areas. This group of people sometimes lacks 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 Nigeria 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 researcher is bothered to find out the impact of poor revenue generation on the lives of people at the rural area and how it has affected development in general especially in Uhumwonde Local Government Area Area.
1.3 OBJECTIVE OF THE STUDY
The broad objective of the research is to evaluate the impact created by poor revenue generation on the development of Uhumwonde in Edo State.
The other objective of this study includes:
i. To determine the level of modern social amenities available in Uhumwonde.
ii. To find out the level of poverty associated with the rural people as a result of poor development
iii. To find out the degree of rural-urban migration.
iv. To make useful suggestions to solve the problem of poor revenue generation as development depends on revenue generated.
1.4 RESEARCH QUESTIONS
i. What are the impacts of poor revenue generation on the development of Uhumwonde?
ii. Are there adequate modern social amenities in Uhumwonde?
iii. Is the poverty level of the rural people high has a result of poor development?
iv. Has poor revenue generation in Uhumwonde contributed to rural-urban migration?
v. How can revenue generation in Uhumwonde 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 Uhumwonde Local Government Area to identify the problems associated with revenue generation and its consequences on development.
1.6 SCOPE AND DELIMITATION
The study is focused on the impact of poor revenue generation and how it affects development of the local government areas. It will also involve the analysis of problems associated wit revenue generation and its impact on the development of Uhumwonde Local Government Area.
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
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.
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.
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)
TAX EVASION
Tax evasion means illegal reduction in one’s tax liabilities, thereby paying less than the appropriate amounts and not paying at all.
INFRASTRUCTURE
He basic physical and organizational structures and facilities (e.g. buildings, roads, and power supplies) needed for the operation of a society or enterprise.
DEVELOPMENT
Economic development is a policy intervention endeavor with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. (Wikipedia 2015).
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