Revenue sources for local governments The following are the main revenue sources for local governments. e) Central government revenue sharing-shares of taxes (and other revenues) collected by central government and allocated (partly or wholly) ment, either based on their origin (where they were collected) or by formula f)Intergovernmental grants of various types to finance some of the costs of local government services, as well as equalising (to some extent) resources between local governments g) Borrowing to finance capital expenditure, from various sources - banks, govern- ment, donors, bonds, etc. (see chapter 4). However, strictly speaking, borrowing is not d revenue source but a financing mechanism, since the money has to be repaid