Theory question 104
Local GovernmentSection A: Elements of Government
How can the revenue of local authorities in your country be improved?
Show the model answer
Model answer
Prompt and adequate statutory allocations from federal and state governments.
Allow councils to borrow from financial institutions for viable projects.
Review rates and fees in line with inflation.
Improve collection: honest, trained revenue officers; computerised records.
Widen the tax base: property rates, licences, market and motor-park fees.
Invest in revenue-yielding projects (markets, housing estates, commercial farms, transport).
Educate people on the need to pay rates.
Regular auditing and checking of corruption and leakages.
Reduce state government interference (e.g. joint account deductions).
Explanation
Explain each measure.