(4) Equalisation grant is the money to be paid to local governments
for giving subsidies or making special provisions for the least developed
districts and shall be based on the degree to which a local government unit is
lagging behind the national average standard for a particular service.
(5) District councils shall be obliged to indicate how conditional and
equalisation grants obtained from the Government are to be passed onto the
lower levels of local government.
(6) The proposals made under clause (1) of this article shall be made
at the same time as the estimates of revenue and expenditure under article
155 of this Constitution and shall state the sums of monies that are to be paid
to each local government.
(7) The proposals made under this article shall form part of the
Appropriation Act as provided for in article 156 of this Constitution.
194. Local Government Finance Commission.
(1) There shall be a Local Government Finance Commission which
shall consist of seven members appointed by the President.
(2) Of the seven members referred to in clause (1) of this article, four
shall be nominated by the local governments.
(3) The members of the Local Government Finance Commission shall
elect from among themselves a chairperson and a vice chairperson.
(4)
(a)
(b)
(c)
(d)
The Local Government Finance Commission shall—
advise the President on all matters concerning the distribution of
revenue between the Government and local governments and the
allocation to each local government of monies out of the
Consolidated Fund;
in consultation with the National Planning Authority, consider
and recommend to the President the amount to be allocated as the
equalisation and conditional grants and their allocation to each
local government;
consider and recommend to the President potential sources of
revenue for local governments;
advise the local governments on appropriate tax levels to be
levied by local governments;