Sources of Fund of Local Government
Funds to Local Governments can be generated through the following:
(i) Statutory Allocation From Federal Government: The Federal Government, The Constitution Statutorily allocate a certain percentage of Public revenue to local governments.
(ii) State Allocation: The Constitution also mandates State Government to allocate 10% of its revenue to local governments.
(iii) Grants: Federal and State Governments can also give grants to local governments for specific projects or matters.
(iv) Rates: Local Government also generate revenue from rates they charge the public such as Water rates, Tenement rates, Capital rates, Radio rates, etc.
(v) Fees and Fines: They charge fees for different services such as registration of births, deaths, marriages, and licensing, motor parks and market Stalls, etc.
(vi) Levies: Local government areas generate revenue from levies such as special levies on development
(vii) Returns on Investments or Commercial ventures: Some Local Governments undertake commercial ventures to generate Fund such as transport business, Plantation dividend from shares, Small scale industries, etc.
(viii) Donations and Gifts from Philanthropists, Corporate organizations, NGO’s and Governments are also sources of fund.
(ix) Loans and Overdrafts: Local Governments may get loans or overdrafts from banks, State Governments for a specific Project.
(x) Royalties from Companies are also Sources. This is obtainable in Ghana, Gambia, Sierra Leone, etc.