Abebaw Kassie (PhD)Milen Amare2024-02-192024-02-192018-01-08https://etd.aau.edu.et/handle/123456789/1841Municipal Financial management particularly the aspect of municipal revenue collection and financing of municipal functions are important areas of concern in Addis Ababa. Addis Ababa city administration is facing with an ever increasing demand for municipal services and this challenge will continue in so far as the city continues to expand. This issue is directly linked to the ability of the city administration in generating adequate and increasing revenue and in its ability to efficiently utilize the available resources. The revenue enhancement plan of the city shows that despite the untapped potential, the city couldn’t collect adequate own revenue that can enable it serve residents of existing and new expansion areas. This study therefore, makes an effort to explore whether expenditures for municipal functions is financed by own revenue; if there are revenue lines that conflicts to each other or with that of state revenues; the cities experience in terms of budget predictability and to look in to the contributing factors towards revenue collection performance. Secondary data (plan and actual data for revenue and expenditure) were used to make analysis of revenue performance over time and to assess utilization capability of the city. Semi structured interview with officials of revenue bureau and BoFED were carried out to collaborate the findings from the secondary data. In addition 60 respondents were purposively targeted from among residents of two subjectively selected woredas to answer a research question. Distribution tables, charts, percentages and examination of bases and timing of municipal revenue levies followed a descriptions and inferences were employed to analyze data and information. The study has discovered that due to shortage in municipal revenue collections, municipal functions are partly financed by state revenue. Budget predictability problem is more on municipal revenue than state revenue and underutilization of budget is commonly observed over the study years. Through the findings of the study, residents aware of municipal revenues and do not have objection to the laws governing such revenues, rather they feel that they are morally obliged to pay their share. However they believe that there is discrimination among tax payers and claim that even for similar businesses the amount of tax and municipal charges is not uniform. Nepotism and corruption are figured out at the top cause for such discriminationen-USThesis