The efficiency of revenue mobilization examines the effectiveness of a country's strategies in harnessing financial resources from diverse channels beyond just the formal tax framework. This indicator reflects how well a government translates its fiscal policies into actual revenue generation by evaluating the consistency and reliability of collections from various income sources, including taxes, fees, and natural resource revenues. High efficiency signifies a robust administrative framework that minimizes evasion and maximizes collection rates, while lower efficiency may indicate systemic challenges, such as poor compliance mechanisms or ineffective governance structures. Ultimately, this measure provides critical insights into a nation's fiscal health and capacity to fund public services, illustrating the importance of adaptive revenue strategies in achieving sustainable economic development.
Source: