REVENUE ALLOCATION AND SOCIO-ECONOMIC DEVELOPMENT OF EBONYI STATE, 2015 - 2023

Abstract

Effective and efficient revenue allocation and utilization remain the cornerstone of development of any society. This research work therefore set out to examine the relationship between improved revenue allocation and socioeconomic development of Ebonyi state from 2015-2023 aiming to identify factors that accounted for the effective utilization of the revenue allocated to Ebonyi within this period. It focuses on the impact of the federation account committee (FAAC) disbursements and internally generated revenue (IGR) on key socioeconomic indicators such as infrastructure development, education, food production and poverty reduction. The differences between the socio-economic development of Ebonyi State from 2015-2023 and the previous administrations were also examined. A mixed method approach was employed including the distribution of survey questionnaires and key informants’ interview with relevant stake holders, to collect data on the effective utilization of the revenue generated and allocated to Ebonyi within the period under review.  The study adopted two theories, namely, the Fiscal Federalism Theory and the Decentralization Theory.  The analysis revealed significant correlation between improved revenue allocation and the socioeconomic development of Ebonyi State from 2015-2023 highlighting the development recorded in education, infrastructure and the agricultural sector in Ebonyi State within the period under review. The study thus recommended that it is imperative for the state government to partner with relevant development partners and the various local governments to ensure that there is adequate infrastructural development spread in both urban areas and rural communities across the 13 local governments of the state so as to fast-track socio-economic development status of the people of the state.