CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Generation is the art or a process of sourcing revenue
to the local government in order for them to achieve their aim. Revenue cloud
be define as those funds generated by the government to finance its activities,
it also cloud be seen as the total fund generated by the government. Federal,
state, local government to meet their expenditure for a fiscal year Lawal (2010).
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 in Abia State.
This has been one of the problems encountered by Umunneochi Local Government
Areas of Abia State.
This however has 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 Umunneochi Local Government Areas of Abia
State.
1.2 STATEMENT OF THE PROBLEM
Local government can be defined as
the administration of a particular town, county, or district, with
representatives elected by those who live there.
Therefore, the Local Government
Council takes direct care of the grassroots people that is the people in the
rural areas. These groups 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
This is one of the major reasons of
rural – urban migration
this has made our cities to be congested and increase in many criminal activities. Based on the above and foregoing assertions, it is oblivious that the impact of poor revenue generation on the development of the rural area is a serious problem. This might be because 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.
this has made our cities to be congested and increase in many criminal activities. Based on the above and foregoing assertions, it is oblivious that the impact of poor revenue generation on the development of the rural area is a serious problem. This might be because 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 Umunneochi
Local Government Areas of Abia State.
1.3 RESEARCH QUESTIONS
The researcher posed the following question:
i.
What
is the poverty level of the rural people associated with high has a result of
poor development?
ii.
To
what extent has rural-urban migration been affected by the poor revenue
generation in Umunneochi local government area.
iii.
How
can revenue generation in Umunneochi Local Government Area of Abia State be
improved?
1.4 OBJECTIVE OF THE STUDY
The broad objective of the research
is to evaluate the impact created by poor revenue generation on the development
of Umunneochi Local Government Areas of Abia State.
The
specific objective of this study includes:
i.
To
ascertain the level of poverty associated with the rural people because of poor
development.
ii.
To
examine the degree of rural-urban migration.
iii.
To
make useful suggestions to solve the problem of poor revenue generation as
development depends on revenue generated.
1.5 SIGNIFICANCE OF THE STUDY
This work will be of
Great importance to Local Government area’s in Nigeria
especially Umunneochi Local Government area Abia state. It will also help to
faster development in our grass root
especially Umunneochi Local Government area Abia state. It will also help to
faster development in our grass root
Secondly, it will be of relevant to
the student in public administration and
as a reference material to them; finally it will also serve as a topic for further studies
as a reference material to them; finally it will also serve as a topic for further studies
1.6 SCOPE OF THE STUDY
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 with revenue generation and its impact on the development of Umunneochi
Local Government Areas of Abia State.
1.7 LIMITATION OF THE STUDY
The researchers were
constraint by time as period 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: It can be seen as the administration of a particular town, county, or
district, with representatives elected by those who live there.
Revenue: Revenue
could be defined as the funds generated by the government to finance its
activities.
Generation: This
is the process of sourcing revenue to the local government in order for them to
achieve their objectives.
Expenditure: 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 on individual or goods by the Government
Tax Evasion: Tax
evasion means illegal reduction in one’s tax liabilities, thereby paying less
than the appropriate
Tax Avoidance: Tax
avoidance is the act of streamlining one’s financial affairs within the law so
as to minimize the tax liabilities.