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Federal Democratic Republic of Ethiopia : Evaluation of MDGs Specific Purpose Grant to Regions

FEDERAL LEVELS EMPOWERMENT TAX EFFORT SUB-NATIONAL GOVERNMENTS GOVERNMENT EXPENDITURES ECONOMIC GROWTH VILLAGES ENTERPRISE DEVELOPMENT PEOPLE CITY FEDERAL TAXES POLICY INSTRUMENT VILLAGE COEFFICIENTS INTEREST MINISTRY OF AGRICULTURE PUBLIC EDUCATION PUBLIC INVESTMENTS ENROLLMENT LOCAL GOVERNMENTS TAX ADMINISTRATION CAPACITY FINANCIAL RESOURCES DIFFERENTIALS FEDERAL GOVERNMENTS TAX COLLECTION TAX BASES REVENUES SUBNATIONAL EXPENDITURES MEDIUM ENTERPRISE CAPACITY BUILDING LOCAL PUBLIC SERVICES ENVIRONMENTAL SUSTAINABILITY TAX CITIES INCOME TAX FEDERAL REVENUES PAYMENTS INTERNATIONAL BANK TRAINING CENTERS COMMUNITY PARTICIPATION MUNICIPALITIES CITY ADMINISTRATIONS SUBNATIONAL SUB- NATIONAL MINISTRY SUB- NATIONAL EXPENDITURES TOTAL EXPENDITURE COMMUNITY DEVELOPMENT TECHNICAL ASSISTANCE ADMINISTRATIVE CAPACITY ECONOMIC COOPERATION TRANSFERS MINISTRIES CENTRALIZATION ADMINISTRATIVE CHALLENGE PUBLIC FINANCE SUBNATIONAL GOVERNMENT CAPITAL EXPENDITURE LOANS TAX REVENUES FARMERS ENTERPRISES CAPITAL INVESTMENTS PEOPLES EXPENDITURE NEEDS FINANCE POLICY EVALUATION INFRASTRUCTURE TAXES EXPENDITURE FEDERAL “MINISTRIES SUB-NATIONAL DEBT FINANCING GRANT CITY ADMINISTRATION POLICY DEVELOPMENT FEDERAL REVENUE CAPITAL SMALL ENTERPRISES SUB-NATIONAL EXPENDITURES TAX LAWS SOURCE OF INCOME BLOCK GRANT GENDER BANK FEDERAL BUDGET MINISTRY OF EDUCATION CENTRAL GOVERNMENT FEDERAL ROAD TAX DECENTRALIZATION LEVEL OF GOVERNMENT URBAN AREAS PUBLIC EXPENDITURES FEDERAL MINISTRY POLICY OUTCOMES EXPENDITURES ENTERPRISE FEDERAL GOVERNMENT INTERVENTION SUB-NATIONAL GOVERNMENT TAX RATES TRANSACTION COSTS FEDERAL MINISTRIES COMMUNITY LEVEL FEDERAL ADMINISTRATIONS SCHOOL BUILDING TAXATION COMMUNITY DEVELOPMENT PROJECT ECONOMIC DEVELOPMENT REVENUE RAISING CAPACITY SECURITY INVESTMENT EXTREME POVERTY ID HOUSEHOLDS MINISTRY OF FINANCE EQUALITY POVERTY TAX EFFORTS SUBNATIONAL GOVERNMENTS COOPERATION TOTAL EXPENDITURES TAXPAYERS TAX ADMINISTRATION DECENTRALIZATION REVENUE POLICY OBJECTIVES SUB-NATIONAL GOVERNMENT EXPENDITURES STUDENTS BORROWING INVESTMENTS CAPITAL EXPENDITURES POVERTY RATE COMMUNITY FEDERAL COUNTRY WOMEN ENROLMENT RATE CAPITAL INVESTMENT FISCAL DECENTRALIZATION DISTRICTS GUARANTEE GENDER EQUALITY INEQUALITY EMPLOYEES
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World Bank, Washington, DC
Africa | Ethiopia
2016-08-25T22:19:05Z | 2016-08-25T22:19:05Z | 2016-03-29

Ethiopia is a highly decentralized country. Presently, sub-national government taxes and revenues account for about 28 percent of general taxes and revenues, and sub-national expenditures amount to 51 percent of general government expenditures. The ensuing vertical mismatch is bridged by grants from the Federal government to the regions. Presently, these grants account for 57 percent of sub-national expenditures1. For many years, these grants consisted mostly of a block grant (the Federal General Purpose Grant) given without any strings attached, which means the regions could use it as they wished. The rest of the report is organized as follows. Section two provides the policy context that is the information, data, evolutions, etc. specific to Ethiopia, which are necessary to understand and interpret the MDGs grant policy. Section three present and discusses the policy content that is the components of the policy previously identified. Section four is a policy assessment, which utilizes the evaluation framework proposed above to analyze the relationships between the various components of the policy, and discuss its efficiency, its effectiveness and its success. Section five is a conclusion that summarizes the analysis, and attempts, prudently and modestly, to outline some potential avenues for future action.

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