2025 Public Sector Perspectives

Maria Choubedar Public Sector Banking, EMEA Peter Sullivan Head of Public Sector Banking, Africa Tax Revenue Mobilization, Public Finance Management and Global Best Practices T axation is the mechanism through which governments extract financial contributions from individuals and enterprises. But it is also the foundation of a government’s mandate and fundamental to the functioning of modern societies. It facilitates and funds the provision of essential public services such as healthcare, education and infrastructure, while simultaneously promoting greater economic growth and development. Yet, it is far more than just a technical or economic issue; it is a subject with deep social and political significance that often provokes strong reactions from the public. Recent events provide examples of social unrest sparked by changes in tax policies or by authorities perceived to be managing revenues inefficiently or opaquely, as seen in Kenya. To address the pressing challenges of revenue mobilization and tax collection, governments must adopt a multifaceted approach that considers the economic, social, and political ramifications of tax policies, practices, and public spending. In this article, we will outline the key factors that impact authorities’ ability to mobilize financial resources and collect taxes: institutional capacity, compliance and enforcement measures, and innovations to adapt to market and societal changes such as climate change and digitalization. We will also identify and highlight best practices deployed by various countries that governments should consider adopting to enhance their revenue mobilization competencies. Citi Perspectives for the Public Sector 47