When distribution weakened development, By Dipo Baruwa
The task before the next government is, therefore, not merely to review revenue-sharing formulas or expand intervention programmes; it is to rebuild a federation in which authority, responsibility and fiscal reward once again reinforce one another, giving every tier of government a compelling reason to pursue development with purpose.
As more revenue streams were centralised and subnational governments became increasingly dependent on federally distributed revenues, the direct relationship between productive effort and fiscal reward gradually weakened.
They are interconnected outcomes of an incentive structure that has progressively weakened the relationship between productive effort, fiscal reward and governmental responsibility.
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