What is an example of revenue sharing?
revenue sharing, a government unit’s apportioning of part of its tax income to other units of government. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states.
What is allocation formula?
As their name implies, formula allocation programs allocate funds to recipients (governments or individuals) via a formula. Many formulas depend on the need of the recipient, and it is also common for formulas to include measures of fiscal capacity. And it is not unusual for aid amounts to depend on local effort.
How does the federal government share revenue?
The present vertical Revenue Allocation Formula is: Federal Government 52.68%; State Governments 26.72%; Local Governments 20.60% and Derivation Formula 13%. Mr. Mustapha who was represented by the Permanent Secretary..
How is oil revenue shared in Nigeria?
Revenue allocation Oil and gas producing regions receive 13% of the government revenue from production in their territory. These revenues are distributed according to an allocation formula (52,68% to central government, 26,72% to regional governments, and 20,60% to local governments).
How is revenue sharing calculated?
Divide each employee’s individual compensation for the period by the total compensation for the period. Then, multiply your profit share percentage by your profits for the period. Finally, multiply the two totals together to determine each employee’s payment amount.
How is revenue share calculated?
It is calculated by dividing total revenue by average total shares outstanding. It is also known as “revenue per share.”
What are the components of formula funding?
The most recent approaches to the formula funding of schools have generally addressed four main cost components: a) School enrolment: a basic financial allocation for the number of students within a school – including appropriate weights for cost differentials across grade levels; b) Curriculum enhancement: a provision …
What is revenue sharing basis?
Revenue sharing is the distribution of the total amount of income generated by the sale of goods or services between the stakeholders or contributors. It should not be confused with profit shares. As with profit shares only the profit is shared, that is the revenue left over after costs have been removed.
What is the sharing formula for VAT in Nigeria?
Distribution of VAT With effect from January 1999, the formula was adjusted as follows: FGN 15%, States 50% and LGAs and area councils of the FCT 35%. The share of the States and that of the local Governments is shared amongst them using the factors of Equality 50%, population 30% and derivation 20%.”
What is revenue sharing model?
Revenue sharing refers to firms’ practice of sharing revenues with their stakeholders, such as complementors or even rivals. Thus, in this business model, advantageous properties are merged to create symbiotic effects in which additional profits are shared with partners participating in the extended value creation.
Who is in charge of revenue allocation in Nigeria?
RMAFC is the regulatory body in charge of the revenue allocation in Nigeria. The powers of the Revenue Mobilization Allocation and Fiscal Commission are as vested on the Commission by the 1999 Constitution under the Third Schedule Part 1 N-item 32 are as follows:
What is the vertical and horizontal allocation formula in Nigeria?
Thus, it can conveniently be concluded that the vertical allocation formula is for inter-tier sharing between the three tiers of government while the horizontal allocation formula is for intra tier sharing among the 36 States and the 774 Local Governments in Nigeria
How are state and local government revenue allocations determined?
The formula is applicable to States and Local Governments only. It provides the basis for sharing of the volume of revenue already allocated to the and 36 States and 774 Local Governments. Through the application of the principles of horizontal allocation formula, the allocation due to each State or Local Government is determined.
How long does the revenue formula remain in force?
Review from time to time, the revenue allocation formula and principles in operation to ensure conformity with changing realities; Provided that any revenue formula which has been accepted by an ACT of the National Assembly shall remain in force for a period of not less than five years from the date of commencement of the Act;