AN EXAMINATION INTO  THE ROLE OF TAXATION IN FUNDING SOCIAL PROGRAMS  IN NANGA EBOKO MUNICIPALITY, CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the study

Taxation is seen as a responsibility that citizens must endure in order to support their government's budgetary responsibilities inside the nation. Taxation is a crucial source of government income, which is used to support public services and implement various social programmes. It is the source of income that is essential and relevant  and often accounts for over ninety percent of government revenue (Adegbite & Azeez, 2022). It is often known as the demonstration of civic duties to help the government in effectively providing social services such as education, infrastructure, security, and other tasks that contribute to the well-being of society. Taxation is used by the government to exert control over economic activity, either in a beneficial or detrimental manner, in order to achieve certain goals (Adegbite, 2021). Social programmes include a range of public goods and services, including education, healthcare, defence, transportation, and other utilities. These programmes aim to improve and stabilise the well-being of the population. The services may include educational services facilities, including health services, transportation, well-maintained roads, water distribution, highly skilled instructors, and other educational facilities. The rational economic strategies aim to enhance economic development by prioritizing education, which is a crucial component of social programmes. These services increase per capita income, which in turn raises the level of life. Education services have a crucial role in promoting and expediting the development of social, physical, and economic systems. If the population is not deprived of these services, the growth of such a nation is quite feasible. The municipality of Nanga Eboko in Cameroon encounters substantial obstacles in securing funding and implementing crucial social programmes necessary for the welfare and development of its residents. Due to an increasing demand for healthcare, education, housing, and other social services, the municipality significantly depends on taxes as its main source of income to finance these programmes. Therefore, the researcher sought to examine the role of taxation in funding social programs  in Nanga Eboko municipality, Cameroon.

1.2 Statement of the problem

Although taxes plays a crucial role in generating income, concerns emerge about its effectiveness in efficiently and fairly collecting taxable resources across various sectors of the economy and segments of the population. An essential analysis of the distribution patterns of tax income towards social programmes is necessary to determine whether resources are allocated in a way that corresponds to the municipality's socio-economic aims and the demands of its varied population (Adegbite, 2016).  Despite the government's substantial spending to stabilize and enhance social services, the country is still grappling with deteriorating infrastructure, subpar education quality, the loss of highly skilled individuals to other countries, a shortage of qualified lecturers, insufficient laboratory equipment, and a devaluation of educational outcomes (Adegbite, 2016). The questions facing the study is that has the government accumulated sufficient tax revenue to adequately fund social programmes? Is the cash generated via taxes and used to fund these social programmes not well supervised? This research demonstrated the amicable correlation between taxes and funding of social programmes in Cameroon. Hence, the study examine the role of taxation in funding social programs  in Nanga Eboko municipality, Cameroon. 

1.3 Objective of the study

The broad objective of the study is to examine the role of taxation in funding social programs  in Nanga Eboko municipality, Cameroon. The specific objectives is as follows:

Examine the relationship between taxation and funding of social programe in Nanga Eboko municipality.

Determine the extent to which taxation influence the quality of social programs for residents of Nanga Eboko municipality.

Examine the role of taxation in the implementation of social programs  in Nanga Eboko municipality, Cameroon.

Proffer  recommendation aimed at enhancing the effectiveness of taxation in funding social programs in Nanga Eboko municipality

1.4 Research questions

The following questions have been prepared for the following

Is there a relationship between taxation and funding of social programe in Nanga Eboko municipality?

What is the extent to which taxation influence the quality of social programs for residents of Nanga Eboko municipality?

What is the role of taxation in the implementation of social programs  in Nanga Eboko municipality, Cameroon?

What are the recommendation aimed at enhancing the effectiveness of taxation in funding social programs in Nanga Eboko municipality?

1. 5   Significance of the Study

The findings of the study will be significant to the following

PolicyMakers: The findings of this study will expose policymakers, government officials, and local authorities to the strengths, weaknesses, and opportunities inherent in the current taxation system, policymakers can devise targeted interventions and policy reforms aimed at enhancing the efficiency, equity, and effectiveness of social spending, thereby improving the overall well-being of the municipality's residents.

Academia:This study adds to the existing body of academic literature on taxation, social development, and public finance in Cameroon and beyond. By generating empirical evidence, theoretical insights, and methodological approaches, the research enriches scholarly discourse and contributes to the advancement of knowledge in fields such as economics, public administration, development studies, and social policy. The findings of the study may also serve as a basis for further research, comparative analysis, and interdisciplinary collaborations aimed at addressing complex societal challenges.

1.6   Scope  of the Study

The study focuses on the role of taxation in funding social programs  in Nanga Eboko municipality, Cameroon. Empirically, the study will examine the relationship between taxation and funding of social programe in Nanga Eboko municipality, determine the extent to which taxation influence the quality of social programs for residents of Nanga Eboko municipality, examine the role of taxation in the implementation of social programs  in Nanga Eboko municipality, Cameroon and proffer  recommendation aimed at enhancing the effectiveness of taxation in funding social programs in Nanga Eboko municipality.

1.7    Limitations of the Study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.8Definitions of Terms

Taxation: refers to the compulsory levying of financial charges or dues by a government on individuals, businesses, or other entities within its jurisdiction. These charges, known as taxes, are typically imposed to generate revenue for public expenditure and to regulate economic activities.

Social Programs: Social programs encompass a range of government initiatives and interventions aimed at addressing social needs, promoting human welfare, and enhancing the well-being of individuals and communities. Examples of social programs include healthcare services, education programs, housing assistance, social welfare programs, and unemployment benefits.

Funding: Funding refers to the provision of financial resources or capital necessary to support the implementation, operation, and maintenance of various programs, projects, or activities. In the context of this study, funding specifically pertains to the allocation of resources, including tax revenue, to support social programs within Nanga Eboko municipality.

Efficiency: Efficiency refers to the extent to which resources, including financial, human, and material resources, are utilized to achieve desired outcomes or objectives. In the context of taxation and social program funding, efficiency relates to the effectiveness of revenue collection and expenditure practices in maximizing the impact and value derived from available resources.

Equity: Equity denotes fairness, impartiality, and justice in the distribution of resources and opportunities among individuals or groups. In the context of taxation and social program funding, equity pertains to the fair allocation of tax burdens and benefits, as well as the equitable provision of social services to ensure that all residents have access to essential resources and opportunities regardless of their socio-economic status or background.

Sustainability: Sustainability refers to the capacity of a system, process, or initiative to endure over time while maintaining its functionality, integrity, and viability. In the context of taxation and social program funding, sustainability encompasses the ability of the revenue generation and allocation mechanisms to consistently finance social programs without compromising future generations' ability to meet their needs.

Revenue Allocation: Revenue allocation refers to the process of distributing tax revenue or financial resources among different government programs, projects, or sectors. It involves prioritizing funding allocations based on established criteria, policy objectives, and societal needs to ensure effective resource utilization and the attainment of desired outcomes.