Local government finance encompasses a complex series of issues that range from provision of services to financial administration, and of how funds are collected, allocated and spent. In short, local government management. This is more so since rapid population growth and fast-paced urbanisation in recent past years have challenged the efficiency of local authorities in providing more and better municipal services. The shortage of money is the major constraint on local authorities seeking to achieve the goals of their agenad. Financing local goverment therefore becomes a critical issue if local government is not only to be seen to be performing but actually fullfilling its role as the provider of local services and functions.
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