The forest revenue system and government expenditure on forestry in Ethiopia

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This report describes the current structure of fiscal policies in the forestry sector in Ethiopia. The report describes how some states are introducing innovative financing mechanisms such as auctioning harvesting rights, revenue sharing and revenue retention by the forestry administration. It also shows that charges collected from the production of NWFPs are very important in the country. Finally, it presents a number of recommendations about how the current situation of low revenue collection might be improved and suggests some more general policy reforms.

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