An analysis of Government Budget in Ethiopia:With Particular Reference to Government Expenditure 1958-1977(E.C.)
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Date
1990-06
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A.A.U
Abstract
Among the factors that enable to promote development include
a well preformed development plan generating and mobilizing
resources proper allocation of these resources, particuarly
the allocution of financial resources among investment(capital)
and consummation ( recurrent), and an efficient utilization of the
meager resources that can be mobilized from external and domoestic
sources.
In Ethiopia,a tremendous growth in budgetary expenditure has
been observed at the same time, this increase in goverrunent
expenditure has been going to the recurrent and from it a greater
proportion to the non-productive sectors , such as defence and
to sustain and run the state machinery. This has been accompenied
by a large deficit in the budget of the goverrunent.
The objective of this study is to find out the factors that are
consideed to be responsible to bring about the tremendous grouth
in Government. expenditure and also to assess reasons for the
allocation of Government fund among alternative proforemanse To
meet this end , stepwise regression analysis is employed. This
is further reported by additional analysis of factors like insti
titutionsons and procedures in expenditure allocation As the
case is in the highly developed and least developed countries ,
Goverrunent expenditure in Ethiopia also was affected more by
non-economic factors. however, different components of expenture
behaved differently.
Finally various suggestions are forwarded to mitigate the existing mitigate proble. even though recommendations to increase revenue by tax
are to be suported, particular consideration should be made on the
role of the Government in promoting; socio-economic development and
the allocation of expenoiture among alternative programs. The Government
can not: continue depending; on foreign sources and defiicitfinancing
as the major and permanent sources of financing its expenditure
with out causingf'.sover consequences to the over all development
of the country
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Keywords
Analysis, Government