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3.3.3 Resources through international assistance and co-operation ................ 113
3.3.4 Resources from the private sector .......................................................... 120
3.3.5 Policy dimensions of resource mobilisation............................................. 122
3.4 KEY ELEMENTS OF RESOURCE ALLOCATION ........................................ 124
3.4.1 Dynamics of public sector resource allocation decisions......................... 124
3.4.2 Public policy dimensions of resource allocation in practice ..................... 130
3.5 KEY ELEMENTS OF RESOURCE GOVERNANCE ...................................... 131
3.5.1 Qualitative aspects of resource governance and management ............... 131
3.5.2 Challenges of monitoring the State’s resource allocation and governance
policies ............................................................................................................ 132
3.6 CONCLUSIONS ............................................................................................ 137
Chapter 4
4.1 INTRODUCTION ........................................................................................... 140
4.2 IDENTIFYING PUBLIC SECTOR REVENUE SOURCES .............................. 141
4.2.1 Tax Revenue .......................................................................................... 143
4.2.2 Non-tax revenue ..................................................................................... 148
4.2.3 Debt and deficit financing........................................................................ 152
4.3
DOMESTIC REVENUE MOBLISATION CHALLENGES AND POLICY
OPTIONS: INDICATORS OF STATE EFFORT ................................................... 155
4.3.1 Structural challenges and policy options: Institutional capacity in revenue
management ................................................................................................... 156
4.3.1.1 Size and composition of the economy ............................................... 156
4.3.1.2 Legal and institutional arrangements for tax collection and
enforcement.................................................................................................. 157
4.3.1.3 Fiscal management capacity............................................................. 158
4.3.2 Process challenges: Optimising fiscal and monetary policies.................. 160
4.3.2.1 Optimal tax administration................................................................. 160
4.3.2.2 Tax efficiency and compliance enforcement...................................... 161
4.3.2.3 Managing debt sustainability ............................................................. 164
4.3.3 Outcome challenges: Equity and revenue maximisation ......................... 167
4.3.3.1 Adequacy of revenue generation ...................................................... 167
4.3.3.2 Fairness, equity and progressiveness of taxation system.................. 168
4.3.4 Indicators of policy effort ......................................................................... 169
4.4
DOMESTIC REVENUE MOBILISATION: STATE PRACTICE AND
POLICY IMPLICATIONS ..................................................................................... 171
4.4.1 Domestic revenue mobilisation efforts: Evidence from State reports....... 171