ABSTRACT:- This work titled, “Implication of Local Government Autonomy on Rural Development in Ebonyi State” A study of Ebonyi Local Government Area” was aimed at ascertaining the extent to which state interference in the management of local government revenue constituted the bane to rural development in Ebonyi State, examining the extent to which poor financial management practice in the local government hinders rural development in Ebonyi Local Government Area among others. “Fiscal Federation Theory” by Kenneth Arrow in the 1954 was adopted. Survey research design was adopted to study a population of 532 which was reduced to a sample size of 228 using Taro Yameni’s formula. Simple random sampling technique and stratified sampling technique were used. Data for this study were gathered from primary and secondary sources. Questionnaire instrument for data collection was used. For the purpose of analyzing data collected from the field survey, frequency distribution tables and simple percentage techniques were applied while in testing the hypotheses that guided the study, the chi-square(X2) statistical tool was used. This study revealed that State interference in the management of local government revenue has constituted the bane of rural development in Ebonyi State; the financial autonomy of the local governments is being severely interfered with by the state governments principally through the instrumentality of the State Joint Local Government Account. State governments make local government appendages of the state through State Joint Local Government Account (SJLGA) mechanism, among others. The implication being that if the menace persists in the local government system rural development in Ebonyi Local Government Area will be jeopardized; hence, this study recommends that State interference in the management of local government revenue menace should be tackled to enhance effective and efficient service delivery in the rural setting, Local government council management should orient its staffers for proper financial management to enhance rural development in Ebonyi local government area among other
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