267 However, domestic resource mobilisation levels are low and Ethiopia relies heavily on external resource inflows from the Protection of Basic Services (PBS) programme. Therefore, there is major concern over how to finance the country’s development endeavour and achieve the poverty reduction and private sector development targets under PASDEP, and in relation to the MDGs. To address this concern, key reforms are also been undertaken in tax policy and administration. Some of these reforms include reorganizing the Ministry of Revenue and replacing it with an autonomous body – the Revenue and Customs Authority; implementation of a national Taxpayer Identification Number (TIN); the introduction of the presumptive tax scheme in order to address the hard-to-tax group; computerizing tax administration; and, conducting comprehensive tax education to enhance taxpayers’ compliance. These reforms have significantly improved domestic revenue collection in the recent past, although a number of challenges remain. These include the large size of the informal sector and tax payers who do not keep proper books of account and/or understate their incomes, corruption, and limited human capacity for supervision. 268 Another challenge is the need to promote the deepening of financial Institutions. Even though the number of private banks, bank branches, and microfinance institutions continue to grow, the low level of financial deepening observed in the country is indicative of the need for further financial sector reforms. Additional challenges to macroeconomic management and poverty reduction also remain, amongst which are low savings rates (public and private), food insecurity and reliance on food aid, overheating of the economy, inadequate road transport infrastructure and electric power supply. These challenges are related to donor dependency, vulnerability to internal and external shocks, and high government domestic borrowing levels. 269 In light of all this, government acknowledges the need to boost economic growth; give more emphasis to agriculture and agro-based industries; provide the necessary support to private sector investment, micro and small-enterprises (MSE), and microfinance; undertake further educational – TVET in particular – and financial sector reforms; scale up affordable access to credit in the regional states and in more remote areas of the country; enhance youth employment through capacity development and more on-farm activities; increase revenue mobilisation; and, maintain a lid on government domestic borrowing. 4.2 Standards and Codes 270 In the CSAR, Ethiopia recognises the importance of complying with international standards and codes to provide assurances of transparency and predictability with respect to government actions and policies. This also contributes to a stable - 121 -