Fiscal Management in Dangila Municipality, Ethiopia. Performance and Policy Implications (original) (raw)

Fiscal decentralization is one component of decentralization that gives authority to local governments to collectrevenue through taxes and responsibility over spending decisions. Even though fiscal decentralization has givenrevenue raising and spending decision powers to lower levels of government, the implementation process hasoften been a daunting task for many local authorities in the developing world. In the case of Ethiopia,decentralization has been implemented since 1991. However, revenue raising and expenditure management arenot efficiently and effectively exercised, especially in lower level government units of Ethiopia. Insufficient revenuecollection and reprehensible expenditure management leads to financial incapability such that public infrastructureand services could not be financed amply. Dangila municipality faces the problem of financial capacity to deliverinfrastructure and services to its citizens. While a number of studies have documented the financial incapacitie...