Management of Internally Generated Revenue in Osun State Local Government. A Case Study of Ife South Local Government

CHAPTER ONE INTRODUCTION 1.1 Background to the Book Finance is a daily exercise. Everyone is deeply involved in it except the dead. It connotes a medium of exchange. Internally Generated Revenue, connotes the funds which Local government, State and Federal government was able to generate to finance their major functions, that is functions for which they are established. At the local government level Internally Generated Revenue can also be defined as all income generated internally by the government from within the council areas on daily, monthly, quarterly or yearly basis. According to the provision of section 160 (i) and (ii) of 1989 constitution of Federal Republic of Nigeria, the federal Government has been the major financier of local governments with 20% of it’s recurrent expenditure coming to the local government, while 10% of the Internally Generated Revenue of the State government is also expected to accrue to the local government. Local Government are also expected to generate funds internally in form of market tax, community tax, liquor/beer tax, tenement rates, sign-post tax, motor park rates, marriage rate, bicycle license and sales tax among others. Other sources of Internally Generated Revenue in the Local Government include fees from hawkers, and squatters, local sales, lotteries, business ventures, transportation business, loans, shares deposits in banks and all categories of fines created by necessity 1