THE EFFECT OF PUBLIC SECTOR REVENUE ON INFRASTRUCTURAL DEVELOPMENT

ABSTRACT

This study examines the effect of public sector revenue on infrastructural development: A case study of Ovia North East Local Government Area of Edo State. This study adopted survey design which was used to source data from 100 respondents. The data was analysed using percentage and frequency table. The result revealed that there is a significant relationship between poor revenue generation in public sector and road maintenance in Ovia North East Local Government Area. The result also shows that there is a significant relationship between inadequate public sector revenue and infrastructural development in Ovia North East Local Government Area. The result there is a significant relationship between road maintenance and safety in travelling in Ovia North East Local Government Area. The study recommends that policy should be designed to ensure that a fair proportion of revenue received from federation account is allocated to the funding of capital expenditure. Efforts should also be intensified in the efficient generation of internal revenues in order to increase its size and reduce associated costs of collection. Ovia North East Local Government Area government should give more consideration to the rehabilitation of the infrastructure, assign substantial budget to rehabilitate the infrastructure in order the people live in distance places get an opportunity to develop their economy. The government should encourage private building companies to build roads and came up with rules and regulation to prevent default risk.