Revenue Budget Structure In Ethiopia

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Revenue budget structure in ethiopia. Ethiopia recorded a government budget deficit equal to 2 50 percent of the country s gross domestic product in 2019. The revenue generating capacity of ethiopia reveals weaknesses in revenue administration. Ordinary revenue external assistance and capital revenue. Thus it does not.

Ethiopia early grade reading assessment. The exclusive domain of each government is not the tax base but the tax source. National education spending this budget brief is focused on analysing the education budget and expenditures that are recorded on budget and reported by mofec. In efy l974 75 total revenue and tax revenue had been l3 and ll percent of gdp respectively.

In general the division of revenue raising power in ethiopia is mainly structured according to the categories of taxpayers or particular things as a source of revenue. Despite the 1976 changes in the tax structure the government believed that the agricultural income tax was being underpaid largely because of underassessments by peasant associations. Taxation revenue to gdp in ethiopia was 23 47 percent which is lower the standard of east african countries 29 and that of sub saharan african countries 26. While total revenue including grants increased significantly in absolute values the tax elasticity was below 1 0 resulting in the general government revenue and grants declining from 21 percent of gdp in 2003 04 to 16 1 percent in 2013 14.

In ethiopia the revenue budget is usually structured into three major headings. The revenue budget is prepared by the ministry of finance mof for the federal government and by finance bureaus for regional governments. Hence the funds expected from these three sources are proclaimed as the annual revenue budget for the country. Ordinary revenue external assistance and capital revenue.

Ethiopian government started the program budget without considering necessary condition for the. Financial investments to effectively address concerns in the quality of education. Government budget in ethiopia averaged 3 24 percent of gdp from 1990 until 2019 reaching an all time high of 6 60 percent of gdp in 2003 and a record low of 8 90 percent of gdp in 2000. As a result the increasing budget deficit has raised concerns regarding the sustainability of government debt the control of inflation.

In ethiopia successful implementation of program budget system has been faced different challenges. And 4 support for the sustainable development goasl or sdgs table 2. 3 subsidies to regions. This page provides ethiopia government budget actual values historical data forecast.