Decentralization: Catalyst for Welfare Service Delivery by Local Government Administration

The paper aims to look at the transferring of authorities, resources and responsibilities from one tier of government (central government) to other tiers of government (state and local governments) in order to deliver efficient and effective welfare service. This transfer serves two basic purposes, namely accountability for resource management and effective welfare service delivery. This can only be possible if the system of co-responsibility between institutions of governance at the central, states and local governments is decentralized effectively. Similarly, the paper intends to critically examine local governments’ budget and budgeting system in order to deliver primary education and healthcare service to the public. Therefore, the paper studies the main source of revenue of local governments, and determines how the resources are utilized in providing primary education and healthcare services. The study designs information data sheet to elicit information from at least four local governments in Nigeria. Statutory allocation disbursed to four local governments under consideration for the fiscal year 2008 is considered. Approved annual budget of the local governments is analyzed to determine the differential (%) in terms of what is budgeted and what is the budget outcomes. The findings reveal average differential of 65.78% between approved and actual estimates for primary education, and 37.57% for primary healthcare service in the local government under consideration. This shows that local governments under consideration are not delivering primary education and healthcare services optimally.