Waec Model Questions Vol1 2022 Government Question 15

A local government area (LGA) receives three sources of revenue each year: a fixed federal allocation (FA) of ₦40 million, a state allocation (SA) that equals 20 % of the sum of FA and internally generated revenue (IGR), and IGR which is directly proportional to the LGA's population. The LGA's population is 250 000 people and the per‑person IGR rate is unknown. The total annual revenue of the LGA is required to be ₦150 million.\n\n(a) Determine the per‑person IGR rate (in naira).\n(b) The LGA must allocate 30 % of its total revenue to health, 25 % to education, and the remainder to infrastructure. The LGA aims to spend at least ₦70 million on infrastructure. After meeting the health and education allocations, will the LGA have a surplus or a deficit for infrastructure, and by how much (in million naira)?