An Analysis of Recent Performance of Addis Ababa City Administration in Revenue Generation and Collection

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Date

2008-07

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Addis Ababa University

Abstract

Public revenue is concerned with the identification, generation, collection and administration of revenues. However, revenue generation and collection efforts are constrained by many challenges and problems. The objective of this research is to analyses the recent performance of Addis Ababa city administration in its revenue generation and collection efforts and to devise ways for the maximum utilization of the revenue potential of the city. This study is based on descriptive analysis and the methodology combines both qualitative and quantitative types of data and information. It has employed both primary and secondary sources of data. The data collection methods include document review, opinion survey and interview. The study has revealed that, Addis Ababa city administration enjoys wider sources of revenue. Thus, it generates and collects revenue from tax, non-tax, capital, municipal and external sources. It is observed that tax revenue on average contributed nearly half of the city's total income in the period under study. However, despite the good performance of the city administration in generating and collecting of revenues, there are many problems and challenges which hindered the maximum utilization on the revenue potential of the city. The major challenges include poor revenue collection performance, non-utilization of alternative revenue sources, the problems of revenue fluctuations and others. The study has come up with recommendations that should be taken both at the federal government and the city administration level. To this end, proper utilization of alternative sources of revenue, empowering the city to administer it own sources of revenue and designing a revenue sharing system are some of the policy implication of the paper.

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Keywords

Administration in Revenue

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