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