The House of Federation has the constitutional mandate to determine the distribution formula along with overseeing the distribution of concurrent tax revenues. But after regional lobbying, a new concurrent revenue distribution formula was introduced three years ago. Under the new formula, regional states as well as lower administrative echelons where mining activity is being conducted are the main beneficiaries. Although the revised revenue distribution represents a positive move towards fiscal autonomy, the federal government was not ready to compensate for its losses. New BeneficiariesAnother problem that has complicated regional fiscal administration is the formation of new states.

Source: Ethiopian News April 22, 2023 07:43 UTC