An analysis of Government Budget in Ethiopia:With Particular Reference to Government Expenditure 1958-1977(E.C.)

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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



Analysis, Government