PROPOSED REVENUE ALLOCATION FORMULA SINCE 1992 to 2003

 

 

*NRMAFC Report & Used 1992-Apr2002 Court nullified

**RMAFC Proposal

Submitted in Aug 2001

#1st Exec Order  

Presidency May2002 

##2nd Exec Order

Presidency July 2002

***RMAFC Revised Formula

Submitted in Dec 2002 but Withdrawn

$Modified

Grant

from FMF

March 2004

$$ RMAFC Revised Formula Submitted to President in Sept.  2004

Fed. Govt

 

48.5%       

41.3%  

56%    

54.68%

46.63%

52.68%

53.69%

State Govt 

 

24.0%       

31.0%

24%

24.72%

33.00%

26.72%

31.10%

Local Govt

 

20.0%

16.0%

20%    

20.60%

20.37%

20.60%

15. 21%

 

Subtotal          

92.5%

88.3%

100%  

100%

100%

 

 -

Special Funds

 

 

 

 

 

-

 

 -

 

FCT Dev.

1.0%

1.2%

-

-

-

 

 -

 

Ecology

Fund

2.0%

1.0%   

-

-

-

 

 -

 

National

Reserve Fund

1.5%

(Stabisation

1.0%   

-

-

-

 

 -

 

ASMDF&TR   

3.0% DNR

1.5%

-

-

-

 

 -

 

BESA

 

7.0%       

-

-

-

 

 -

 

Subtotal                                

7. 5%

11.7% 

-

-

-

 

 -

 

Grand Total

100%

100%

100%

100%

100%

100%

100%

Meaning of Symbols

*          Was used between 1992-2002 before nullification of Special Fund indices by the Supreme Court Verdict of April 2002

**         Proposal submitted by RMAFC in August 2002 which was affected by above Verdict while still in the National Assembly         

#          First Presidential Executive Order after the Supreme Court’s nullification of Special Fund in April 2002

##        Second Presidential Executive Order after uproar against the huge allocation to Federal Government

***       Revised Revenue Formula Submitted by RMAFC in December 2002 after the removal of contentious Special Funds but withdrawn in 2004 on the allegation of fake bill in circulation

$          Presently the Revenue Allocation Formula being implemented is based on the Modified Grant from Federal Ministry of Finance, which came to effect in March 2004.

$$         The FG allocation in the 2004 recommendation of 53.69% includes Special Fund under its custody and trust for other tiers. The 53.69% will take care of FG 47.19%,  Gen Ecology Fund 1.50%, Solid Mineral Fund 1.75%, National Reserve Fund 1.50%, Agric Dev Fund 1.75%

 

Abbreviation

BESA: Basic Education & Skill Acquisition,  ASMDF &TR: Agric/Solid Mineral Dev.Fund & Tech Research,   DNR: Dev. of Natural Resources

 

HORIZONTAL ALLOCATION FORMULA IN USE

PRINCIPLE/FACTOR                    ALLOCATION(%)

Equality                                                40.00

Population                                            30.00

Internal Revenue Effort                        10.00

Landmass & Terrain                              10.00

Education                                               4.00

Health                                                    3.00

Water                                                    3.00

                                                            100%

 

 

 

PROPOSED HORIZONTAL ALLOCATION FORMULA OF SEPTEMBER 2004

PRINCIPLE/FACTOR                    ALLOCATION(%)

Equality                                                 45.23%

Population                                             25.60%

Population density                                   1.45%

Internal Revenue Effort                            8.31%

Landmass                                                5.35%

Terrain                                                     5.35%

Rural Road/Inland Water Way                 1.21%

Potable Water                                          1.50%

Education                                                 3.00%

Health                                                     3.00%

                                                            100%