The primary source of fund for local government is ________?
Answer Details
The primary source of fund for local government is statutory allocation.
Statutory allocation is a portion of the national revenue that is set aside by the federal government for distribution to local governments. This allocation is derived from various sources such as taxes, tariffs, and other forms of revenue generated by the federal government. The allocation is usually distributed on a monthly basis to each local government based on the revenue generated by the federal government.
Grants are another source of funding for local governments, but they are not the primary source. Grants are typically provided by the federal or state government for specific projects or initiatives. Loans are also another source of funding, but they are usually not a primary source, as local governments may have to pay back the loans with interest, which can be difficult to do with limited revenue. Fines may generate revenue, but they are not a reliable source of income, as they are dependent on the occurrence of specific events, such as violations of laws or regulations.