Tax, Audit and Transparency (TAUT)

Whilst registering visible improvements in basic services delivery and headcount poverty reduction in recent years , Ethiopia still faces difficult challenges in its resource mobilisation and management. Tax revenue is not only insufficient to finance basic services, but the tax system also causes impediments to private sector development. Weak audit and oversight functions risk less effective use of the limited resources. Efforts of government around anti-corruption are constrained by the limited capacity of anti-corruption agencies , and less effective engagement of society. The programme aims to address constraints related to capacity deficits, specifically around systems development, human resource management, IT requirements and society engagement with Tax, Audit and Anti-corruption agencies. Improving audit and transparency systems in the country is vital not only to ensure effective management of domestic resources but also to ensure that UK aid is used legitimately and achieves value for money. The TAUT programme will align very closely with a broad range of wider DFID and UK objectives, not least those of the DFID Ethiopia Anti-Corruption and Counter Fraud Strategy and the HMG ‘Golden Thread’ drive. It is also part of our long term commitment to supporting Ethiopia’s timely, self-financed exit from high levels of poverty.