An Appraisal of Local Government Revenue Generation and Economic Growth in Gombi Local Government Area, Adamawa State
- Project Research
- 1-5 Chapters
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- Table of Content: Available
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Chapter One: Introduction
1.1 Background of the Study
Local government revenue generation is critical to the financial autonomy of local authorities and plays a key role in fostering economic growth and development. In Gombi Local Government Area (LGA) of Adamawa State, revenue generation is a vital component of its economic strategies, as it allows for investments in infrastructure, education, healthcare, and other public services. However, challenges such as limited revenue sources, inadequate collection mechanisms, and dependency on federal allocations have hindered the effectiveness of local governments in driving economic growth (Usman & Buba, 2023).
This study evaluates the current state of local government revenue generation in Gombi LGA, examining how effective revenue mobilization strategies impact economic growth and development at the local level. By focusing on the financial management and budgeting practices within the LGA, this research will highlight the relationship between revenue generation and local economic activities, such as entrepreneurship, infrastructure development, and employment creation (Mohammed & Aliyu, 2024).
1.2 Statement of the Problem
Despite various efforts by local government authorities to improve revenue generation, Gombi LGA continues to face challenges related to financial sustainability and economic growth. The local government's reliance on federal allocations, low tax compliance rates, and inefficiencies in resource management have limited its capacity to drive substantial local economic development. This study aims to assess the effectiveness of local government revenue generation strategies and their impact on economic growth in Gombi LGA.
1.3 Objectives of the Study
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To assess the revenue generation strategies employed by Gombi Local Government Area.
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To evaluate the impact of local government revenue generation on economic growth in Gombi.
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To recommend improvements to local government revenue generation practices to enhance economic development in Gombi.
1.4 Research Questions
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What revenue generation strategies are employed by Gombi Local Government Area?
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How has local government revenue generation impacted economic growth in Gombi?
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What measures can be implemented to improve local government revenue generation and foster economic development in Gombi?
1.5 Research Hypotheses
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Effective local government revenue generation positively impacts economic growth in Gombi Local Government Area.
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Insufficient local revenue generation hampers economic growth in Gombi.
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Improving revenue collection and management systems will enhance local economic development in Gombi.
1.6 Significance of the Study
The study's findings will be significant to local government authorities, policymakers, and development partners interested in improving local economic growth through efficient revenue generation. The recommendations provided will assist in reforming revenue collection mechanisms and budgeting practices, ensuring more sustainable local development. Moreover, the study will contribute to the broader discourse on fiscal decentralization and local economic development in Nigeria.
1.7 Scope and Limitations of the Study
The study focuses on Gombi Local Government Area in Adamawa State and analyzes the impact of its revenue generation practices on local economic growth. The study is limited to this specific LGA and does not encompass other regions in Adamawa or Nigeria. A limitation of the study could be the difficulty in obtaining comprehensive data on local government finances due to possible restrictions or non-disclosure.
1.8 Operational Definition of Terms
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Revenue Generation: The process through which local governments mobilize financial resources, including taxes, levies, grants, and other income sources.
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Economic Growth: An increase in the production of goods and services within an area, leading to improved living standards and job creation.
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Local Government: A political unit within a country that is responsible for governing a specific area, typically at a subnational level, with authority over certain functions such as education, healthcare, and infrastructure.
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