This was a direct and probably the most popular question. Candidates' general approach to the question was fine.
However, most of them confused ‘tax' with rates as they related tax collection with local government. Also, licenses, birth and death registrations were regarded as sources of revenue instead of fees. This amounted to loss of marks for the affected candidates.
Moreover, some candidates did not define local government appropriately. The key words - a semi-autonomous body created by law to provide for the 'needs of the people at the grass roots level were left out in their answers. This also lowered the overall performance in the question.
In order to score good marks in this question, candidates were expected to  identify some of the following sources of revenue:
(1) grants from central government;
(2) statutory  allocation;
(3) rates/levies;
(4) state allocation;
(5) court fines, etc.