Neco Model Questions Vol1 2025 Government Question 34

Practice objective / multiple choice question 34 from the 2025 Neco Model Questions Vol1 Government examination.

Neco Model Questions Vol1 2025 Government Objective / Multiple Choice Hard Difficulty
Question 34 NECO_MODEL_QUESTIONS_VOL1 • 2025 • GOVERNMENT • objective

A local government area (LGA) records total annual revenue of \(\text{₦}120\) million. The revenue sources are: 40% from federal allocation, 35% from internally generated revenue (IGR), 15% from state allocation, and 10% from other sources. The constitution requires that at least 30% of total revenue must come from IGR for fiscal autonomy. Determine whether the LGA meets this requirement, and calculate the shortfall or surplus in percentage points. Suggest one policy measure to improve IGR.

Answer Options

A. Yes, the LGA meets the requirement. IGR is 35% (₦42 million) versus the required 30% (₦36 million), giving a surplus of 2 percentage points. One policy to improve IGR is to introduce a new property tax.
B. No, the LGA does not meet the requirement. IGR is 35% (₦42 million) versus the required 30% (₦36 million), resulting in a shortfall of 5 percentage points. One policy to improve IGR is to increase federal allocation.
C. Yes, the LGA meets the requirement. IGR is 30% (₦36 million) versus the required 30% (₦36 million), giving a surplus of 0 percentage points. One policy to improve IGR is to reduce the market levy.
Correct Answer D. Yes, the LGA meets the requirement. IGR is 35\% (\(\text{₦}42\) million) versus the required 30\% (\(\text{₦}36\) million), giving a surplus of 5 percentage points. One policy to improve IGR is to introduce or increase a local market levy.
Correct Answer
D
Correct Option:
Yes, the LGA meets the requirement. IGR is 35\% (\(\text{₦}42\) million) versus the required 30\% (\(\text{₦}36\) million), giving a surplus of 5 percentage points. One policy to improve IGR is to introduce or increase a local market levy.

About This Question

This is Neco Model Questions Vol1 2025 Government Question 34. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Government examination.

Difficulty level: Hard .

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