Fiscal Responsibility And Revenue Allocation As A Panacea To The Financial Problems To The Three Tiers Of Government

ABSTRACT

All tiers of government in Nigeria should have access to minimum revenue in order to live up to their fiscal responsibility. Thus, if a tier of government is unable to meet it fiscal responsibility then it could be traced to inequality in revenue allocation. This study examined fiscal responsibility and revenue allocation as panacea to the three tiers of government. Three simple ordinary least (OLS) model specified for the study were estimated using time series data revealed that there was a positive and statistically significant impact of revenue sharing allocation on federal government revenue. There was a positive and statistically significant impact of revenue sharing allocation of state government and there was ci positive but statistically insignificant impact of revenue sharing in local government. Time recommendation made include need for Nigeria to revert to fiscal federalism review of the current revenue sharing in favour of states and local government and expunging the constitutional provision for join revenue allocation between state and local government.