Federal Budget Allocation and Control in Ethiopia: Challenges and Options

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Date

2007-07

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Publisher

A.A.U

Abstract

The research work attempted to look into the budget allocation and control practices of the federal government of Ethiopia to assess and address the challenges faced by the major budgetary actors (HPR, MoFED and OFAG). Ethiopia as one of the poor countries is striving to ensure sustainable development by allocating its scarce resource (budget) to address the basic social and economic needs of the people. The intervention of the government for the provision of these basic services is very essential and to achieve the development objectives of the country, there should be efficient and effective budget allocation and utilization in the country. It was, therefore, necessary to examine the country's budgetary process focusing on the major budgetary actors. This study, conducted a survey to generate the required data and information from the targeted government institutions. It was found out that the current budgetary approach (line item approach) of the country has not created a conducive environment to link the budget with the major goals and objectives of public agencies. If was also realized that the budget and public accounts standing committees of the House of peoples' Representatives lack adequate institutional capacities to effectively carryout their roles of analyzing and controlling budget allocation and implementation of the country.

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Keywords

Federal Budget Allocation, Control in Ethiopia

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