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Author(s): Nonso Peter Okafor, Charles U. Onugu.

Volume/Issue: Volume 8, Issue 2 (2025)

Page No: 117-127

Journal: African Journal of Accounting and Financial Research (AJAFR)

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Abstract:

This study examines the challenges in Anambra State's budget performance from 2013 to 2023, focusing on the significant yet varied effects of taxes, fees, licenses, fines, and sales on revenue collection and budget implementation. The secondary sources of data include Anambra State Government Budgets, Anambra State Government reports of the Accountant General with Financial Statements and Anambra State Government Budget Performance Reports. Using linear regression, the study demonstrated that taxes (β = 0.816, t-value = 7.13), fine (β = -0.094, t-value = 4.11), and sales (β = -0.249, t-value = 8.01) collectively had a significant impact on budget performance. Again, the immediate effect of licenses on budget performance has a coefficient of -0.179 with a significant t-value of -2.47 (**) at a 5% probability level. Also, the lagged value (L1) of licenses has a small positive coefficient of 0.028 with an insignificant t-value of 1.46. Furthermore, the lagged value (L1) has a positive and significant coefficient of 0.202 with a t-value of 2.02 significant at a 5% level of probability. It is recommended that the Anambra State Government strengthen its revenue collection mechanisms by focusing on improving the efficiency and transparency of taxes, fines, sales, and licenses. This can be achieved through the further adoption of electronic systems like e-AiRS, which have proven effective in boosting tax collection.

Keywords:

Taxes, Fees, Licenses, Budget performance, Anambra State.

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