An Assessment of Local Revenue Mobilaztion And Expenditure Management Efforts: With Particular Emphasis to City Administration of adama
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Date
2007-07
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Addis Ababa University
Abstract
This study exammes the local rcvcnu e mobilization and expenditure
management efforts of City Admi n is tration of Adama using municipal
revenue and expendi ture a nalysis to identify the magnitude of the problem
of urban fin a n ce. Qu a li ta tive and quanti tative d a ta were colleted form
s econdary and primary so urces . Revenue and expenditure reports, plan and
budget documents both from Regional and City Administra tion level,
interviews and questionna ires a re major sources of the data.
The evidence in the study leads to conclusion that the city Administration of
Adama is s hort of efforts to mob ilizc its local revenue potential and the
expenditure ma n agement a ppears to be in-a ppropria te . The expenditure
management is faced by problems of capital budget under spending, low
level of municipal services provision a nd the existence of huge surplus fund.
Pa radoxically enou gh, the City Admin is tra tion Adama is cha ra cterized by
low level of urban services provision a t the pres ence of huge surplu s fund
accumula ted over a decade. Furth er , the findings of the study revealed tha t
the exis te nce of fiscal gap in City Adminis tration 's finance. Revenue
enhan cemen t plan based on improvemen t of tax a dminis tration system,
municipa l borrowing for ca pital fina n cing, pUblic-private partnership
options in providing services, in tergovernmental tran s fer restructured in
u rban setting, revis ion of user ch arges and fees and introduction of new
municipa l taxes are th e a lternatives recommended to fill the fiscal gap.
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Keywords
Local Revenue Mobilaztion