Evaluation of Landbased Revenue and Internally Generated Revenue in Enugu State Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue IX, September 2021 | ISSN 2454–6186

Evaluation of Landbased Revenue and Internally Generated Revenue in Enugu State Nigeria

Ifeanyichukwu Valentine, Nwafor, Charles Chukwuweike, Egolum
Department of Estate Management, Nnamdi Azikiwe University, Awka, Nigeria

Abstract: Annual budget of government contains all necessary expectations and activities earmarked for the year and some of these expectations fall short of the original design. This study investigated the extent of difference between projected recurrent revenue and the actuals from 2006 to 2019. Contribution of land-based revenue to the internally generated revenue and the growth of land-based revenue and internally generated revenue. The purpose is to evaluate the state performance in economic planning and revenue generation. Data sourced from the annual report of Enugu state accountant general was used. With the use of descriptive statistics is was discovered that the state land-based revenue estimates failed within the entire period to realize what was projected except in 2010 and the performance of her internally generated revenue was very poor. Average contribution of land based revenue to the internally generated revenue was 9% and the growth rate of land based revenue and internally generated revenue are 4.92% and -41% respectively. The study recommended a modernized revenue generation system and strategy for the state and evidenced based internally generated revenue determination approach.

Keywords: Land-based Revenue, Internally Generated Revenue, Enugu State, Economic planning, Revenue sources

I. INTRODUCTION

Funds which state governments can generate within their jurisdiction are termed internally generated revenue and it is a major part of the state budget which guides government activities and programs. Various sources of internal revenue available to state governments as contained in accountant general’s annual financial report includes taxes, fines and fees, licenses, earnings & sales, rent on government property, interests and dividends, among others and the viability of a state is measured in her capacity to generate revenue internally. Babalola (2009) submitted that the provision public infrastructure like schools, roads, health centers require huge government spending, especially in these modern times and internally generated revenue is a critical determinant of what can be done in this regard. So also, provision of adequate security, housing and many others. Therefore, the need for improved revenue at all levels of government has become imperative, given the expenditure profile of government aimed at reducing poverty, generating employment, boosting growth and creating wealth.
Nigerian constitution of 1999 identified numerous sources of revenue for different tiers of government and yet over 80% of the annual revenue of the three tiers of government still comes from petroleum and has been so since 1970s. However, the serious drop in the price of oil in recent years has led to a

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