Concept:State and local governments depend mainly on the revenue shared from the Federation Account.Explanation:Statutory allocation is the money the federal government gives to state and local governments from the Federation Account.It is the major source of revenue because it is received regularly and used to run government activities.Taxes and levies are internal revenue sources, but they are not the major source.Value added tax is also shared revenue, but statutory allocation remains the main source.Answer:B. statutory allocation