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 that the State Government 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 Governments 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, 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 funds such as transport business, plantation dividends from shares, small-scale industries, etc.
(viii) Donations and Gifts from Philanthropists, Corporate organizations, NGOs and Governments are also sources of funds.
(ix) Loans and Overdrafts: Local Governments may get loans or overdrafts from banks and State Governments for a specific Project.
(x) Royalties from Companies are also sources. This is obtainable in Ghana, Gambia, Sierra Leone, etc.