BINGHAM UNIVERSITY, KARU

NAME: SAIDU TANIMU MOHAMED

DEPARTMENT OF POLITICAL SCIENCE

BHU/16/03/04/0005

POL 416 - PUBLIC FINANCE ADMINISTRATION

QUESTION:
What is Public Revenue? Discuss the various sources of Public Revenue?.

1
 INTRODUCTION:

This essay will discuss the government’s conventional sources of revenue namely- direct
and indirect taxes, expanded to enable corporate governance take place. This means a broader
portion of total funds required by government for the purpose of financing activities. Well
Sources of Government Revenue Government (Public) revenue can be defined as income
generated by public sector from various services rendered. Revenue is the other arm of the
public/government accounts. Income generated by the public sector from various services
rendered could mean a portion of total funds required by government for the purpose of
financing its activities. The constitution of the federal government of Nigeria provides for the
generation of revenue through taxation and miscellaneous receipts as the main sources of
revenue. Please read along the subsequent paragraphs as this essay will pin-down our
discussions on two main sources of government revenue, although governments have other
means of sourcing for fund for financing projects.

CONCEPTUAL CLARIFICATION OF TERMS

Dalton defined public policy the subject as one which concerns itself with the income and
expenditure of public authorities and the adjustment of one to the other. It is learned that the
study of the subject chiefly centers around different aspects of government revenues and
government expenditure in relation to the state’s economy and people. It deals with the income
raised through revenue and expenditure spend on the activities of the community and the terms
“finance” is money resource i.e. coins. But the public is collected name for an individual within
an administrative territory and finance.
What is Revenue? Revenue is the income generated from normal business
operations and includes discounts and deductions for returned merchandise. It is the top line or
gross income figure from which costs are subtracted to determine net income.
Sales Revenue formula. Revenue is also known as sales on the income statement. Also known as
turnover, revenue is the total amount of money that a business has taken in over a defined period,
such as a year. Often this figure refers to sales, although it can relate also to revenue from
trading, financial speculation or any money-spinning activity. In other words, revenue is the
income generated from business operations.

2
 Public revenue meanwhile concentrates on the methods of raising public revenue, the
principles of taxation and its problems. In other words, all kinds of income from taxes and
receipts from the public deposit are included in public revenue. It also includes the methods of
raising funds. It further studies the classification of various resources of public revenue into
taxes, fees, and assessment etc.
Government is public revenue is the money received by
a government from taxes and non tax sources to enable it to undertake government
expenditures. Government revenue as well as government spending are
components of the government budget and important tools of the government's fiscal policy.
Seignorage is one of the ways a government can increase revenue, by
deflating the value of its currency in exchange for surplus revenue, by saving money this way
governments can increase the price of goods too far.
Well Public expenditure is a part of Government finance, we
study the principles and problems relating to the expenditure of public funds. This part studies
the fundamental principles that govern the flow of Government funds into various streams. Also
public debt is a section of public-finance, where we study the problem of raising loans. The
public authority or any Government can raise income through loans to meet the shortfall in its
traditional income. The loan raised by the government in a particular year is the part of receipts
of the public authority.

GENERAL SOURCES OF PUBLIC REVENUE

a.)Tax Revenue

b.) Non Tax Revenue

a) A tax is a compulsory levy imposed by a public authority against which tax payers
cannot claim anything. It is not imposed as a penalty for only legal offence. The essence of a tax,
as distinguished from other charges by the government, is the absence of a direct quid pro quo
(i.e., exchange of favour) between the tax payer and the public authority. Tax can also be divided
into two types which are;

1. DIRECT TAX :

3
Direct taxes are one type of taxes an individual pays that are paid straight or directly to the
government, such as incom tax, poll tax, land tax, and personal property tax. Such direct taxes
are computed based on the ability of the taxpayer to pay, which means that the higher their
capability of paying is, the higher their taxes are.

Example of Direct Taxes

As mentioned above, one good example of direct taxes is a person’s income tax. Usually, income
tax is filed annually although deductions from one’s salary can be done on a monthly basis. If,
for example, an individual incurs tax amounting to $30,000 a year for his annual salary of
$120,000, the $30,000 is his direct tax.

Types of Direct Taxes

 1. Income tax

It is based on one’s income. A certain percentage is taken from a worker’s salary, depending on

how much he or she earns. The good thing is that the government is also keen on listing credits
and deductions that help lower one’s tax liabilities.

 2. Transfer taxes

The most common form of transfer taxes is the estate tax. Such tax is levied on the taxable
portion of the property of a deceased individual, including trusts and financial accounts. A gift
tax is also another form wherein a certain amount is collected from people who are transferring
properties to another individual.

 3. Entitlement tax

Such type of direct tax is the reason why people enjoy social programs like Medicare, Medicaid,
and Social Security. The entitlement tax is collected through payroll deductions and is
collectively grouped as Federal Insurance Contributions Act.

 4. Property tax

Property tax is charged on properties like land and buildings and is used for maintaining public
services like the police and fire departments, schools and libraries, as well as roads.

4
 5. Capital gains tax

Such type of tax is charged when an individual sells assets such as stocks, real estate, or
business. The tax is computed by determining the difference between the acquisition amount and
the selling amount.

2) INDIRECT TAX:

Indirect taxes are basically taxes that can be passed on to another entity or individual. It is
usually imposed on a manufacturer or supplier who then passes on the tax to the consumer. The
most common example of indirect tax is the excise tax on cigarettes and alcohol. Value Added
Tax (VAT) is also an example of an indirect tax.

Types of Indirect Taxes

What many people are not aware of is that practically everyone pays taxes, especially indirect
taxes. It is because it is imposed on almost all the products that we consume. Here are some of
the types of indirect taxes.

1. Sales tax

Whenever people go to the malls or department stores to shop, they are already about to pay
indirect taxes. Goods such as household items, clothing, and other basic commodities are subject
to such types of taxes. Upon payment at the counter, the final sale price is padded with a sales
tax that the store collects and pays to the government.

2. Excise tax

Excise tax is also very common. When a manufacturer buys the raw materials for the company’s
products, for example, tobacco for cigarette companies, they already need to pay indirect taxes

5
on the items. Through a part of the normal course of business, the manufacturer can pass on the
burden to the consumers by selling the cigarettes at a higher price.

3. Customs tax

Ever wonder why imported products are expensive? It is because of customs tax. When a
container filled with bananas from another country enters a country, the importer pays indirect
tax (customs tax), which is then passed on to the consumers.

4. VAT Tax
A value-added tax (VAT) is a consumption tax placed on a product whenever value is
added at each stage of the supply chain, from production to the point of sale. The amount of
VAT that the user pays is on the cost of the product, less any of the costs of materials used in the
product that have already been taxed.

5. Sales Tax

A sales tax is a consumption tax imposed by the government on the sale of goods and services. A
conventional sales tax is levied at the point of sale, collected by the retailer, and passed on to the
government. A business is liable for sales taxes in a given jurisdiction if it has a nexus there,
which can be a brick-and-mortar location, an employee, an affiliate, or some other presence,
depending on the laws in that jurisdiction.

Example of Indirect Taxes

Let us use the example of VAT to illustrate how an indirect tax is imposed. Say, for example,
John goes to the outlet store to buy a refrigerator that’s priced at $500. When he asks the sales
representative, he or she will declare the sale price, which is $500, and that is the right answer.

However, the refrigerator’s real value is actually lesser than that, but because it’s been added a
VAT (usually 10% to 20%), the sale price is now $500. If John looks at his receipt, he will see
the actual price of the refrigerator before the tax was added. It is the manufacturer of the unit or
item who collects the tax from the sale price and pays it to the government.

6
 

b) NON-TAX REVENUE
While taxation is a primary source of income for the government, it also earns
some recurring income other than tax, which is called non-tax revenue. While sources of tax
revenue consist of few but bulk direct and indirect taxes, the number of sources of non-tax
revenue are very large with wide variance in the quantum of collections per source. Although
there are large sources of non-tax revenue, the quantum of collection per source is much less
than that of tax collections. For instance, when people avail services offered by the government,
like electricity, telecommunication, DTH, broadband etc, they pay bills, which include the share
of non-tax revenue as the government provides infrastructure support to facilitate the services.
The government also collects interest as non-tax revenue on the loans and funds advanced to
states for various purposes. So, the government collects non-tax revenue in return for
providing/facilitating any goods or services.

Difference between Tax Revenue and Non Tax Revenue

Tax revenue is charged on income earned by an individual or an entity (direct tax) and on the
value of transaction of goods and services (indirect tax). On the other hand, non-tax revenue is
charged against services provided by the government. It also includes interest charged on loans
advanced by the government for various purposes. Note that it is compulsory to pay a part of the
income earned/generated and amount of goods and services consumed as tax. However, non-tax
revenue becomes payable only when services offered by the government are availed.

Components of Non Tax Revenue

There are several services provided by the government that creates the sources or components of
non-tax revenue. Here are examples of some components of non tax revenues are as follows:
 Interest: It comprises of interest of loans given to states and union territories for reasons
like non-plan schemes (e.g. flood control) and planned schemes with maturity period of 20
years such as modernisation of police forces and also interest on loans advanced to Public
Sector Enterprises (PSEs), Port Trusts and other statutory bodies etc.

7
 Dividends and profits: This includes dividends and profits from PSEs as well as the
transfer of surplus from Reserve Bank of India (RBI).
 Petroleum license: This includes fees to get the exclusive right for exploration in a
particular region. Such fees may be in the form of royalty, share of the profit earned from
contact areas during a specific period, Petroleum Exploration License (PEL) fee or
Production Level Payment (PLP).
 Power supply fees: This includes fees received by Central Electricity Authority from the
supply of power under the Electricity (Supply) Act.
 Fees for Communication Services: This mainly includes the license fees from telecom
operators on account of spectrum usage charges that licensed Telecom Service Providers
pay to the Department of Telecom (DoT).
 Broadcasting fees: It includes license fee paid by DTH operators, commercial TV
services, commercial FM radio services etc.
 Road, Bridges usage fees: This includes receipts through toll plazas on account of the
usage of national highways, permanent bridges etc.
 Examination fees: This includes fees paid by applicants of competitive examinations
conducted by the Union Public Service Commission (UPSC) and Staff Selection
Commission (SSC) to fill up vacancies in government offices.
 Fee for police services: This includes fee received for supplying central police forces to
state governments and other parties like Central Industrial Police Force (CISF) to industries
etc.
 Sale of stationery, gazettes etc: This includes receipts under ‘Stationery and Printing’
relating to the sale of stationery, gazettes, government publications, etc.
 Fee for Administrative Services: This includes fees received for providing services like
audit services, issuance of passport, visa etc.
 Receipts relating to Defence Services: This relates to services provided through
Canteen Stores Department (CSD).

8
 SOURCES OF PUBLIC REVENUE ALLOCATION IN NIGERIA

We know that government earns money to sustain itself and perform its duties of national
building through fiscal measures. The money required by government to perform its duty must
be from a source and utilized on recurrent and capital expenditure. In Nigeria, there are two main
sources of government revenue-oil and non-oil.

OIL REVENUE
This became imperative since exploration of oil became major contributor to the national
budget. This source consists of royalties, petroleum profit, rent, earnings from direct sales of
crude oil to domestic market by Nigerian National Petroleum Corporation (NNPC), gas flaring
penalties, pipeline licenses etc. Now, the following salient issues should be noted;

 Since the 1970s oil revenue became the dominant source of government revenue, contributing
over 70 per cent of federally collected revenue.

 For most of the 1960s, federally-collected revenue from oil sources accounted for an average
of 8 percent of total receipts.

 The oil boom of the 1970s propelled the sector to become dominant, accounting for most of
the foreign exchange earnings as well as federally-collected revenue.

 The contribution of the oil sector to total receipts increased from average of about 46 percent
between 1970 and 1973 to about 77 percent between 1974 and 1980. Through-out the 1980s and
1990s, the contribution of the oil sector to total revenue maintained its dominant position and
contributed between 70 and 76 percent of the federally-collected revenue (CBN, 2000).

 With the constitutional powers vested on the federal government to control the exploration of
mineral resources, proceeds from the sales of crude oil, petroleum profit tax, rents and royalties
etc. are collected by the federal government and paid into the Federated Account for distribution

9
among the three tiers of government. The status quo is retained till today with legislations for
adjustment

Non-oil Revenue
These are the sources of revenue made up of the Direct and In-direct taxes.
Well since independence, federally collected revenue was largely revenue from non-oil sources,
accounting for an average of 92% percent of the total receipts while revenue from the oil sources
accounted for the balance. As can be deduced from available records, from the 1970s to this day,
the non-oil sector revenue accounted for the balance of about 20 to 30 % percent receipts
annually, to complement the oil sector receipts which form the mainstay of the sources receipts
of Federal Republic of Nigeria. Government also borrows from the public through issuance of
bonds and using innovative finance techniques, public-private partnerships, franchise or
licensing of private sector providers etc. are also applied where the need arises.

Representation of public revenue can be grouped into the following bellow

 Oil revenue
1. NNPC earning
2. Petroleum profit

3. Tax
4. Royalty

 Non-oil revenue
1. Import duties

2. Export duties

3. Excise duties

4. Stamp duties
5. Value-added tax

10
 6. Personal income tax
7. Corporate tax
8. Capital gains tax

9. Capital transfer tax

 Independent revenue sources

1. Fines

2. Fees
3. Rates

4. License
5. Income from government investment

6. Public loans

TYPES OF REVENUE FOR EACH GOVERNMENT LEVEL

Well the major sources of revenue collected by the federal government are listed below
as;
 Import, export, excise duties and fees
 Direct tax- mainly company income tax and petroleum profit tax
 License fees and stamp duties
 Mining rents and royalties
Earnings and sales
 Rents on government property

 Reimbursements

 Revenue from Armed Forces

 Interest and repayments

Miscellaneous Sources of revenue for states are as follows;

Independent revenue, statutory appropriations from the federation account, Non-statutory

11
 grants, Total recurrent revenue, less recurrent expenditure, Budget surplus or deficit .
 Capital grant from federal government

 Internal loans

s External loans

 Total capital receipts Sources of revenue for local government are as follows.
 Independent revenue
 Statutory allocation from the federal government
 Statutory allocation from the state government
 Budget surplus
 Internal loans
Capital grants
 Total capital receipts

OIL REVENUE IN NIGERIA

Government revenue is concerned with the way government raises income from the
services rendered. The ways and means of raising money needed by governments - Federal, State
and Local governments are stipulated in the 1999 Constitution. The funds from these sources are
meant to be used in providing the needs of the citizenry, which is the main objective of
government accounting. Government needs money to carry out her duties and for sustainability.
However, in Nigeria, there are two major sources of government revenue - oil and non-oil
revenue sources. 3.2. Oil Revenue Before the discovery of oil in Nigeria, the agricultural sector
was the mainstay of Nigeria’s economy, contributing about 95% to her foreign exchange
earnings, generating over 60% of her employment opportunities and approximately 56% to her
gross domestic earnings (World Bank, 2013). The major exportable crops were cocoa, palm
products, cotton, ground nut, timber and rubber, with these products contributing most of
Nigeria’s export, Agriculture was the leading growth sector of the Nigerian economy while oil
export was very poor. Plethora of available literature on the Nigerian economy has it that Nigeria
was primarily an agrarian economy, whose revenue generation was based on agriculture;
statistics from the Federal Bureau of Statistic shows that between 1958 and 1969, the

12
contribution of petroleum (GDP) at current factor was just 0.007 percent, while agriculture was
the mainstay of the country’s economy accounting for higher percentage of Gross Domestic
Product (GDP). However, the discovery of oil at Oloibiri area of Bayelsa State in 1956 by Shell
BP led to the relegation of agricultural products to the background, making oil the mainstay of
the economy shortly after the Nigeria civil war.

The oil industry then began to play a prominent role in the economic life of the country.
Ever since then, the petroleum industry has been seen as the engine that drives the economic
wheel of the Nigerian economy. The contribution of the oil industry has been enormous and can
be viewed from the angle of employment generation, foreign exchange earnings, government
revenue and gross domestic product. Oil provided approximately 90 percent of foreign exchange
earnings and about 80 percent of federal revenue and contributes to the growth rate of Gross
Domestic Product (GDP) of the Nigerian economy. The discovery of oil led to abandonment of
other solid minerals and agriculture. Nigerians depend heavily on oil and here they are with the
sharp fall in the price of oil in the global market since 2014 and the adverse effect on the
economy. The present administration of Mohammed Buhari has been on its feet to reinvigorate
the lost glory of the economy but it seems bleak. The Nigerian state has for decades depended on
one source of revenue and has failed to spread its eggs into different baskets in case there is a
crash. Unfortunately, the country’s fortune has been oscillating from one economic downturn to
another as a result of the unexpected crash in the oil market. Below is an excerpt from Fin Intel
magazine on the situation of the oil revenue-related situation in the country. Nigeria has lost as
much as N77.2 billion from oil revenue in one month as a result of continuous decline in the
price of crude oil, according to data obtained from the Central Bank of Nigeria. Specifically, the
CBN in its October 2014 Economic Report, highlighted that oil revenue for the month dropped
by 14.11% from N547.2 billion to N470 billion recorded in a previous month. Likewise, non-oil
revenue also declined by 3.9% or N11.1 billion from N284.6 billion in September 2014 to
N273.5 billion in October. Consequently, gross federally-collected revenue depreciated by
10.6% or N88.2 billion from N831.8 billion in September to N743.6 billion in October. 47

Giving a breakdown of gross oil revenue components for October, the Apex Bank stated
that crude oil/gas sales declined to N117.8 billion from N160.4 billion recorded in the previous
month, while domestic crude oil/gas sale appreciated by N6 billion or 6.4% from N93.6 billion to

13
N99.6 billion recorded in September. According to the Central Bank, Petroleum Profit Tax,
PPT/Royalties also declined by N25.5 billion or 9.19% from N277.4 billion to N251.9 billion in
October. . The CBN attributed the drop in the country’s oil revenue to a decline in crude oil and
gas exports-receipts due to the fall in the price of crude oil in the international market. The CBN
said, “At N470.04 billion, gross oil receipts, which constituted 63.2% of the total revenue, was
lower than both the monthly budget estimate and the preceding month by 21.3 and 14.1%,
respectively. “The decline in oil receipts relative to the monthly budget estimate was certainly
attributable to fall in receipts from crude oil and gas exports due to the fall in the price of crude
oil in the international market. “In continuation, the CBN disclosed that of the gross federally-
collected revenue, about N457.12 billion less all deductions and transfers, was transferred to the
Federation Account for allocation among the three tiers of government and the 13% Derivation
Fund. According to the CBN report, the Federal Government received N217.77 billion; the states
and local governments received N110.46 billion and N85.16 billion, respectively, while the
balance of N43.73 billion was distributed to the oil-producing states as 13% Derivation Fund.
“From the Value Added Tax (VAT) Pool Account, the Federal Government received N9.37
billion, while the state and local governments received N31.25 billion and N21.87 billion,
respectively,” the CBN disclosed. The CBN put Nigeria’s crude oil production, including
condensates and natural gas liquids, at an average of 2.0 million barrels per day (mbd) or 62
million barrels for the month. This, the CBN said, was 0.05 mbd or 2.4% lower than the 2.05
mbd or 61.50 million barrels produced in the preceding month. The CBN said, “Crude oil export
was estimated at 1.55 mbd or 48.05 million barrels for the month. This represented a decline of
3.1 per cent below the level recorded in the previous month. Deliveries to the refineries for
domestic consumption remained at 0.45 mbd or 13.95 million barrels in the review month. At an
estimated average of US$88.78 per barrel, the price of Nigeria’s reference crude, the Bonny
Light (37º API), fell by 9.9 per cent below the level in the preceding month.” Interestingly, also,
on 1st October 2017, these facts about Nigeria were presented.

One can therefore deduce that the mainstay of the economy from the available records is
oil and the adverse effect of the drop in the price of oil is obvious and not hidden. The oil sources
consist of royalties, petroleum profits, rents, earnings from direct sales of crude oil to domestic
market by Nigeria National Petroleum Corporation (NNPC), gas flaring penalties, pipeline
licenses, etc. Non-oil Revenue Non-oil revenue includes direct and indirect taxes. Direct and

14
indirect taxes have been dealt with in the previous module. Prior to the introduction of oil, nonoil
revenue formed the main stay of federally collected revenues. An average of 92% of the
federally collected receipts was largely revenue from non-oil sources and the balance from oil
sources. However, shortly after the civil war, the oil sources assumed the mainstay position of
the economy as 20-30% receipts annually came from the non-oil sector to complement the oil 50
receipts which formed the mainstay of the economy. Government, in a bid to meet up with the
goals of her existence also borrows from public through issuance of bonds, the newly found
public private partnership, franchises, etc.

Below is the structure of oil revenue in 2011

Oil Revenue : Crude Oil / Gas Exports N2.287 trillion , PPT and Royalties, etc.
N3.976.30 trillion , Domestic Crude Oil Sales N2.608.80 trillion, Other Oil Revenue N6.0 •
Less: , Deductions 3/ 4,863.60N • Oil Revenue (Net) N4.015 trillion  Non- Oil Revenue N2,
237 trillion , Corporate Tax N700 billion , Customs & Excise Duties N438.3 billion , Value-
Added Tax (VAT) N649.5 billion , FG Independent Revenue N182.5 billion, Education Tax
N101.7 billion , Custom Levies N156.8 billion , Nat. Inf. Tech Dev. Fund (NITDF) N8.6 billion ,
Less: Deductions 3/ N94.9 billion , Non- Oil Revenue (Net) 2.143 trillio. Some of the
independent revenue sources include:
Fines  Fees  Rates  Licenses  Income from
Government investment.

Public Loans. Data below covers 2016 Population (million inhabitants) 177.072 Land
area (1,000 sq km) 924 Population density (inhabitants per sq km) 192 GDP per capita ($) 2,262
GDP at market prices (million $) 400,571 Value of exports (million $) 34,704 Value of
petroleum exports (million $) 27,788 Current account balance (million $) 2,722 Proven crude oil
reserves (million barrels) 37,453 Proven natural gas reserves (billion cu. m.) 5,475.2 49 Crude
oil production (1,000 b/d) 1,427.3 Marketed production of natural gas (million cu. m.) 42,562.4
Refinery capacity (1,000 b/cd) 446.0 Output of refined petroleum products (1,000 b/d) 53.5 Oil
demand (1,000 b/d) 393.1 Crude oil exports (1,000 b/d) 1,738.0 Exports of petroleum products
(1,000 b/d) 17.9 Natural gas exports (million cu. m.) 25,146.5  b/d (barrels per day)  cu. m.
(cubic meters)  b/cd (barrels per calendar day).

15
 HOW GOVEERMENT GET PUBLIC REVENUE
FROM DIFFERENT FORMS OF TAX

1. INDIVIDUAL INCOME TAX

The individual income tax has been the largest single source of federal revenue
since 1950, amounting to about 48 percent of the total and 8.3 percent of GDP in 2017. In
recent years, individual income tax revenue has climbed as high as 9.9 percent of GDP
(in 2000) at the peak of the 1990s economic boom and dropped as low as 6.1 percent (in
2010) following the 2007–2009 Great Recession.
2. CORPORATE INCOME TAX
The tax on corporate profits yielded 9 percent of government revenue in 2017, a
revenue source that has been trending downward. Revenue from the tax has fallen from
an average of 3.7 percent of GDP in the late 1960s to an average of just 1.7 percent of
GDP over the past five years, despite ticking up to 1.9 percent of GDP in 2014 and 2015.
3. SOCIAL INSURANCE (PAYROLL) TAX
The payroll taxes on wages and earnings that fund Social Security and the
hospital insurance portion of Medicare make up the largest portion of social insurance
receipts. Other sources include payroll taxes for the railroad retirement system and the
unemployment insurance program, and federal workers’ pension contributions. In total,
social insurance levies were 35 percent of federal revenue in 2017.
The creation of the Medicare program in 1965, combined with periodic increases
in Social Security payroll taxes, caused social insurance receipts to grow from 1.6 percent
of GDP in 1950 to 6.2 percent in 2009.A temporary reduction in employees’ share of
Social Security taxes—part of the stimulus program following the financial meltdown—
reduced social insurance receipts to 5.3 percent of GDP in 2011 and 2012. Employees’
share has since climbed back to 6.1 percent of GDP in 2017.
4. FEDERAL EXCISE TAXES
Taxes on purchases of goods and services, including gasoline, cigarettes,
alcoholic beverages, and airline travel, generated 2.5 percent of federal revenue in 2017.
But these taxes, too, are on the wane: excise tax revenues have fallen steadily from an
average of 1.7 percent of GDP in the late 1960s to an average of 0.5 percent over 2012–
17.

16
 5. OTHER REVENUES
The federal government also collects revenue from estate and gift taxes, customs
duties, earnings from the Federal Reserve System, and various fees and charges. In total,
these sources generated 5.6 percent of federal revenue in 2017. They have averaged
between 0.6 and 1.1 percent of GDP since 1965. In recent years, the figure has been on
the high end of that range because of unusually high profits of the Federal Reserve Board
related to its efforts to stimulate the economy since 2008.
6. SHARES OF TOTAL REVENUE
The individual income tax has provided nearly half of total federal
revenue since 1950, while other revenue sources have waxed and waned (figure 4).
Excise taxes brought in 19 percent of total revenue in 1950, but only about 3 percent in
recent years. The share of revenue coming from the corporate income tax dropped from
about one-third of the total in the early 1950s to less than one-tenth in 2017. In contrast,
payroll taxes provided one-third of revenue in 2017, more than three times the share in
the early 1950s

CONCLUSION:
Public Revenue is a key instrument of economic management. This study has endeavored
to analyze the relationship between public financial management systems and fiscal outcomes in
Nigeria. The findings indicate that institutional factors such as corruption and literacy rate affect
the institutional pillars of Public revenue in Nigeria. The pillars include governance structure,
accountability, transparency and predictability. Poor budget coordinating institutions, lack of
respect for the rule of law, weak fundamentals of appropriation templates and contract
management and poor accounting systems are the critical factors undermining the ability of these
pillars to positively influence fiscal outcomes in Nigeria. Thus, the need to critically improve the
index of capture, budget institutions and the coordination of the MDA’s capital budgeting system
through integrated and systematic accounting system cannot be overemphasized.

17
Reference List :

Financial Secretary. (2015) Speech by the Financial Secretary: The 2015-16 Budget. Available
from: http://www.budget.gov.hk/2015/eng/pdf/e_budgetspeech2015- 16.pdf [Accessed
September 2015].

Financial Services and the Treasury Bureau. (2015) Estimates for the Year Ending 31 March
2016. Available from: http://www.budget.gov.hk/2015/eng/estimat es.html [Accessed September
2015].

Hong Kong Monetary Authority. (2015) Available from: http://www.hkma.gov.hk/ [Accessed

September 2015].

Inland Revenue Department. (2015) Available from: http://www.ird.gov.hk/ [Accessed

September 2015].

Rating and Valuation Department. (2015) Available from: http://www.rvd.gov.hk/ [Accessed

September 2015].

The Legislative Council. (2015) Available from: http://www.legco.gov.hk/ [Accessed September

2015].

18
The Treasury. (2014) Accounts Published in the Gazette: Accounts for year ended 31 March
2014. Available from: http://www.gld.gov.hk/egazette/pdf/20141822/egn201418223151.pdf
[Accessed September 2015].

The Treasury. (2015a) Accounts Published in the Gazette: Accounts for the 3 Months Ended 30
June 2015. Available from: http://www.gld.gov.hk/e
gazette/pdf/20151932/egn201519326002.pdf [Accessed September 2015].

The Treasury. (2015b) Accounts Published in the Gazette: Accounts for the year ended 31 March
2015. Available from: http://www.gld.gov.hk/egazette/pd f/20151922/egn201519223837.pdf
[Accessed September 2

19
20