Public Revenue and Expenditure Gap Analysis at Local Level in Somali National Regional State: The Case of Dhagahbour City Administration
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Date
2021-05
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A.A.U
Abstract
Raising revenue and spending the collected income to provide public services and developmental infrastructure is a pre-requisite of any local government in the world. In most city administration in developing countries, however, revenue generation have been hampered by a combination of local governments' insufficient taxing authority and lagging revenue efforts. As a result, revenue generation often has not kept pace with expenditure needs, and this has led a severe public service shortage. This has been evident in the Dhagehbour City Administration, as the study shows. The main objective of the study was to analyze Public revenue and expenditure gap in Dhagehbour City Administration. Therefore, to achieve the objective, a descriptive approach was design that involve survey, document review and record analysis. The data were collected thorough questionnaire from a sample of 150 employees. While 24 High officials and seniors’ staff were collected by face-to-face interview. Dhagahbour City Administration and 24 high officials were selected purposively while the rest respondents were selected random sampling method. The analysis was computed using both Microsoft Excel and Statistical Package for Social Science (SPSS) program. Dhagehbour City Administration benefited from both inter-governmental transfers and internally generated revenue. The major findings of the study shows that Dhagehbour City Administration faces inadequate revenue to spend its functions which undermines the public service delivery and developmental projects in the city. The problem of revenue shortage in Dhagehbour City Administration is found to be the inefficiency of internal sources that generates low income and the external sources from higher levels of governments, which are not based on the requirements of the city. On the other hand, the City Administration does not develop medium-term fiscal planning that clearly defines projections for revenue and expenditure. Moreover, it incurs excess fuel and telephone expenses as well as vehicle repair and maintenance costs. Based on the finds of the study, the researcher recommended that city administration should collect a sufficient revenue which can fulfill the needs in the city, diversification of revenue sources, managing tax collection periods, improve city expenditure management, preparing proper for financial planning, providing appropriate services, and balancing the fiscal gap in the city.
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Expenditure Gap Analysis, Dhagahbour City Administration