Abstract

The aim of the study was to assess the Impact of poor revenue generation on the development of the Buea local government case study Buea councils. The research design used in this study was descriptive survey. The population of this study involves all staff and employees of the Buea council and a sample of 30 staffs was selected to comprise the study sample. These staffs were selected at random to fill the questionnaires.

Both primary and secondary sources of data were needed for this study. The data was obtained through questionnaires and data was presented in tables and expressed in simple percentages.

The hypothesis was tested using a regression analysis with the help of the Statistical Package for Social Sciences (SPSS). Findings from this study revealed that poor revenue generation greatly affects community development as it was seen to have a p-value of (0.000). The study however recommends that more strict measures be put in place to collect taxes in Buea and people who evade taxes should be sanctioned.

CHAPTER ONE

INTRODUCTION

1.1 Background to study

Every person, group, organization, and even government aspires to progress. At all times, there must be significant growth and advancement in people’s lives. This can be done individually and/or jointly (Fayol 1986:324).

In the struggle for societal progress, the tier of government closest to the people, the local government, assumes some of the people’s responsibilities. Enough revenue is required to design, implement, and maintain buildings and infrastructures in order to meet the goals of this obligation. Enough finances are required for the people’s well-being, including the construction of accessible roads, public schools, health care centers, bridges, markets, and portable water supplies, among other things. Taxes, royalties, haulages, fines, and grants from state, national, and international governments can be used to create these funds (Ojo, 2003:143).

As a result, without appropriate money creation, the local government cannot start, execute, and manage these projects and other obligations, which is the primary reason why progress in some Cameroon Local Government Councils is only superficial. Even if the state government contributes funding or even undertakes projects that indirectly develop local governments, this is insufficient to ensure rapid growth and development of a local government. The local government must make personal efforts to increase their revenue creation.

Taxation is the primary source of revenue for the Buea Council local governments. Tax is a mandatory levy levied by the government on individuals and businesses to fund the state’s various authorized functions (Olaoye, 2008:13). Taxation is an essential component of civilization. Throughout history, man has had to pay tax in some form or another, whether in cash or in kind, to his chieftain and later to a sort of organized government (Ojo, 2003:143). No system or set of rules, whether foreign or natural, can be effective unless it has some financial independence. Cameroon’s local administrations have evolved over the years.

The origins of direct taxation in local government in Cameroon can be traced back to the pre-colonial British period. During this time, localities were subjected to communal taxes (Rabiu, 2004:32) Recently, local government money has been obtained from two broad sources: foreign sources and internal sources. The availability of people and material resources that the nation can mobilize and harness for local government growth is critical to a functional local government system.

The Federal Military Government released reform instructions for local governments in 1976. The reforms that recognized local governments as the third tier of government, in charge of all government activities at the local level. Another local government reform was established in 1988. This resulted in a significant and unprecedented reform of autonomy for the country’s municipal administrations. Greater obligations devolved on the local government as a result of increased autonomy, and it became common knowledge that most local governments are struggling to cope with the current level of responsibility. The following were the primary goals of establishing local governments:

1.As the third tier of government, it is responsible for providing suitable services and development in accordance to the demands of the local population as expressed by its representatives.

2.To act as a liaison between the federal government and local communities.

3.Engage the people at the local level in government activities in order to mobilize and utilize both human and material resources.

4.To make democratic self-government more accessible to the grassroots of society and to exchange initiative and leadership capacity.

Almost all local governments in Cameroon are unable to carry out their tasks due to a lack of funds resulting from insufficient income production. The dismal financial condition is made worse by the country’s current inflationary scenario, which devalues the monies available to provide important social services to the people. The planning, execution, and maintenance of infrastructures and facilities at the local government level are all heavily reliant on funds. Different local governments devise revenue-generating strategies that are both comfortable and feasible.

1.2 Statement of the problem

The Buea Local Government Council is responsible for the people who live in the surrounding districts. Most of the time, this group of people lacks basic amenities such as inadequate drinking water, insufficient energy, accessible roads, and inadequate educational infrastructure and facilities, to name a few. and because of the Buea region’s current crisis in (the Southwest and northwest of Cameroon ). The city of Buea is crowded as relatives and family members from their homes in the surrounding villages, which are highly affected by the crisis, in search of sanctuary in the city, where they may lose their lives if they do not, and this has resulted in an upsurge in various criminal activities.

Based on the aforementioned and preceding assumptions, it is clear that the impact of low revenue production on rural development is a severe issue. This could be due to a lack of revenue generating. The issue of revenue creation must be addressed head-on if Cameroon is to realize its vision of emerging in 2035 and maybe attain the millennium development goals (MDGs) target. As a result, the researcher is interested in learning more about the impact of low revenue generation on people’s lives in rural areas and how it has impacted development in general, particularly in the Buea Local Government Area.

1.3 Research questions

The main research question of this study is, what is the Impact of poor revenue generation on the development of Buea local government case study Buea councils?

The specific research question is as follows;

1. What is the effect of poor revenue generation on infrastructural development?
2. What is the effect of poor revenue generation on the standard of living of people?
3. What are the challenges of revenue generation in the local government?
4. What are the possible solutions to solve the problem of poor revenue generation?

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