Revenue allocation can be
defined as the processes by which the income or resources of a country are
shared among the states for the purpose of
national development.
defined as the processes by which the income or resources of a country are
shared among the states for the purpose of
national development.
- Population: Revenue is shared among the states on the
basis of the number of people in that state. In this case, the
state with the highest population would
receive more than others with less population. - Derivation: This means that states that have natural resources e.g. crude oil, would receive special allocation.
- Equality of
states: This means that each state regardless of its
size or population would receive the same
allocation. - Even Even development: This is to ensure that there are uniform
development in the states. In this case, less developed states would receive
more than the developed ones. - Need of the state: Revenue is allocated to the various states based on the need. This is done to ensure that each state attains
a minimum national standard. - National interest: This suggest that the interest of the nation
should be the guiding principle in revenue
allocation.
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