{"id":3598,"date":"2025-02-05T14:48:56","date_gmt":"2025-02-05T14:48:56","guid":{"rendered":"https:\/\/eraf.deqepub.org\/?post_type=journal_article&amp;p=3598"},"modified":"2025-02-05T14:48:56","modified_gmt":"2025-02-05T14:48:56","slug":"balancing-revenue-allocation-a-comparative-analysis-of-vertical-and-horizontal-distribution-mechanisms-in-public-finance-evidence-from-nigeria-south-africa-and-mexico","status":"publish","type":"journal_article","link":"https:\/\/deqepub.org\/eraf\/journal_article\/balancing-revenue-allocation-a-comparative-analysis-of-vertical-and-horizontal-distribution-mechanisms-in-public-finance-evidence-from-nigeria-south-africa-and-mexico\/","title":{"rendered":"Balancing Revenue Allocation: A Comparative Analysis of Vertical and Horizontal Distribution Mechanisms in Public Finance \u2013 Evidence from Nigeria, South Africa, and Mexico"},"content":{"rendered":"\n<p><strong>Prof. Aliyu Idris<\/strong><strong><sup>1<\/sup><\/strong><strong> &amp; Haruna Dzugwahi PhD<sup>2*<\/sup><\/strong><strong><\/strong><\/p>\n\n\n\n<p><em><sup>1<\/sup>Revenue Mobilisation Allocation and Fiscal Commission, Abuja, Nigeria<\/em><br><em><sup>2<\/sup>Office of the Accountant General of the Federation, Abuja, Nigeria<\/em><\/p>\n\n\n\n<p><strong>ABSTRACT<\/strong><\/p>\n\n\n\n<p>Revenue allocation is a fundamental pillar of public finance, aimed at ensuring the equitable distribution of financial resources among different levels of government to promote economic stability, governance efficiency, and social equity. This study provides a comparative analysis of the vertical and horizontal revenue distribution mechanisms in Nigeria, South Africa, and Mexico, three federations with distinct yet comparable revenue-sharing frameworks. By employing a qualitative research approach, this study examines policy documents, legal frameworks, government reports, and academic literature to analyse the principles guiding revenue allocation across federal, state, and local governments in these countries. Despite the existence of structured frameworks, persistent disparities in fiscal capacity, governance effectiveness, and service delivery highlight significant inefficiencies in these systems. The study identifies gaps in current allocation models, particularly in balancing fiscal autonomy with financial sustainability. The findings underscore the need for governance reforms, improved fiscal transparency, and enhanced financial independence at subnational levels to strengthen economic development and public service delivery. Ultimately, this study serves as a valuable resource for policymakers, researchers, and stakeholders interested in optimizing revenue allocation to enhance national and subnational governance effectiveness.<\/p>\n\n\n\n<p><strong>Keywords<\/strong>: Revenue Allocation; Horizontal Distribution Mechanisms; Public Finance; Economic Stability<\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/eraf.deqepub.org\/wp-content\/uploads\/2025\/02\/ERAF-911-10.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of ERAF 9(1)1-10.\"><\/object><a id=\"wp-block-file--media-9da6a73b-ee31-4d3e-a0a1-4d76cf07e526\" href=\"https:\/\/eraf.deqepub.org\/wp-content\/uploads\/2025\/02\/ERAF-911-10.pdf\">ERAF 9(1)1-10<\/a><a href=\"https:\/\/eraf.deqepub.org\/wp-content\/uploads\/2025\/02\/ERAF-911-10.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-9da6a73b-ee31-4d3e-a0a1-4d76cf07e526\">Download<\/a><\/div>\n\n\n\n<p><strong><em>Citation:<\/em><\/strong> Idris, A. &amp; Dzugwahi, H. (2025). Balancing Revenue Allocation: A Comparative Analysis of Vertical and Horizontal Distribution Mechanisms in Public Finance \u2013 Evidence from Nigeria, South Africa, and Mexico<em>. European Review in Accounting and Finance, 9(1), 1-10. <a>DOI<\/a>: <\/em><a href=\"https:\/\/doi.org\/10.5281\/zenodo.14810891\"><em>https:\/\/doi.org\/10.5281\/zenodo.14810891<\/em><\/a><em><\/em><\/p>\n\n\n\n<p><strong><em>Copyright:<\/em><\/strong> \u00a92025 The Authors. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.<\/p>\n","protected":false},"author":1,"template":"","journal_article_cats":[153],"class_list":["post-3598","journal_article","type-journal_article","status-publish","hentry","journal_article_cat-vol-9-no-1"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v26.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Balancing Revenue Allocation: A Comparative Analysis of Vertical and Horizontal Distribution Mechanisms in Public Finance \u2013 Evidence from Nigeria, South Africa, and Mexico - European Review in Accounting and Finance<\/title>\n<meta name=\"description\" content=\"Revenue allocation is a fundamental pillar of public finance, aimed at ensuring the equitable distribution of financial resources among different levels of government to promote economic stability, governance efficiency, and social equity. This study provides a comparative analysis of the vertical and horizontal revenue distribution mechanisms in Nigeria, South Africa, and Mexico, three federations with distinct yet comparable revenue-sharing frameworks. By employing a qualitative research approach, this study examines policy documents, legal frameworks, government reports, and academic literature to analyse the principles guiding revenue allocation across federal, state, and local governments in these countries. Despite the existence of structured frameworks, persistent disparities in fiscal capacity, governance effectiveness, and service delivery highlight significant inefficiencies in these systems. The study identifies gaps in current allocation models, particularly in balancing fiscal autonomy with financial sustainability. The findings underscore the need for governance reforms, improved fiscal transparency, and enhanced financial independence at subnational levels to strengthen economic development and public service delivery. Ultimately, this study serves as a valuable resource for policymakers, researchers, and stakeholders interested in optimizing revenue allocation to enhance national and subnational governance effectiveness.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/deqepub.org\/eraf\/journal_article\/balancing-revenue-allocation-a-comparative-analysis-of-vertical-and-horizontal-distribution-mechanisms-in-public-finance-evidence-from-nigeria-south-africa-and-mexico\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Balancing Revenue Allocation: A Comparative Analysis of Vertical and Horizontal Distribution Mechanisms in Public Finance \u2013 Evidence from Nigeria, South Africa, and Mexico\" \/>\n<meta property=\"og:description\" content=\"Revenue allocation is a fundamental pillar of public finance, aimed at ensuring the equitable distribution of financial resources among different levels of government to promote economic stability, governance efficiency, and social equity. 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The findings underscore the need for governance reforms, improved fiscal transparency, and enhanced financial independence at subnational levels to strengthen economic development and public service delivery. Ultimately, this study serves as a valuable resource for policymakers, researchers, and stakeholders interested in optimizing revenue allocation to enhance national and subnational governance effectiveness.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/deqepub.org\/eraf\/journal_article\/balancing-revenue-allocation-a-comparative-analysis-of-vertical-and-horizontal-distribution-mechanisms-in-public-finance-evidence-from-nigeria-south-africa-and-mexico\/\" \/>\n<meta property=\"og:site_name\" content=\"European Review in Accounting and Finance\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/deqepub.org\/eraf\/journal_article\/balancing-revenue-allocation-a-comparative-analysis-of-vertical-and-horizontal-distribution-mechanisms-in-public-finance-evidence-from-nigeria-south-africa-and-mexico\/\",\"url\":\"https:\/\/deqepub.org\/eraf\/journal_article\/balancing-revenue-allocation-a-comparative-analysis-of-vertical-and-horizontal-distribution-mechanisms-in-public-finance-evidence-from-nigeria-south-africa-and-mexico\/\",\"name\":\"Balancing Revenue Allocation: A Comparative Analysis of Vertical and Horizontal Distribution Mechanisms in Public Finance \u2013 Evidence from Nigeria, South Africa, and Mexico - European Review in Accounting and Finance\",\"isPartOf\":{\"@id\":\"https:\/\/deqepub.org\/eraf\/#website\"},\"datePublished\":\"2025-02-05T14:48:56+00:00\",\"description\":\"Revenue allocation is a fundamental pillar of public finance, aimed at ensuring the equitable distribution of financial resources among different levels of government to promote economic stability, governance efficiency, and social equity. 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