EFFECT OF REVENUE GENERATION ON INFRASTUCTURAL DEVELOPMENT OF GOMBE STATE

Abstract

 Revenue Generation are vital to the survival of many states in Nigeria, but regrettably, many states have neglected the role of internally generated revenues in their development. They rely heavily on shared revenues from the federation account. Any reductions in allocations from the federation sent shocks throughout the federation due to over reliance on it by states. The study examines the effect of internally generated revenue on Infrastructural development of Gombe state, whether revenue generation has impacted on Gombe state by providing water, electricity and roads network. To achieve the objectives of the study, a documentary research method was designed relying on secondary data. The study found that the revenue generation by the state revenue agency was very low as to register any tangible effect on the state budget that rely heavily on allocation from the federation account and other sources. Internally generated revenue has minimal on the infrastructural development of the state, but it has significant impact on the annual expenditure on water, electricity and roads network. The study also revealed that internally generated revenue was economical and tax avoidance and evasion were also insignificant. The study therefore recommended that there should be equality in its allocation toward infrastructural development in the state. For instance, more IGR should be allocated to water than road. Good water provision will have a trickledown effect on healthcare because it will forestall and tackle bad water-related sickness like malaria that are commonly suffered by people of the state and extends their life span. Also there should be expansion of the state revenue base as well as improving the board capacity to generate more revenues that will contribute substantial to the state government annual budget.