Financing Tvet Schools in Oromia: A Survey Study of Selected Tvet Schools

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Addis Ababa University


Education is not only a productive investment in human capital; it is also the best mechanism to attain a better capacity building program. Therefore, the availability of financial resources is quite indispensable to the effective implementation of educational reform. By the same token, the expansion and qualitative improvement of TVET can not be realized without adequate financial sources. This study was, therefore, designed to assess the major sources of revenue and funding schemes applied to TVET schools in Oromia. A deceptive survey method was employed to conduct the study. The study was conducted in 4 TVET schools and 4 Woredas as they were selected randomly using their respective geographical locations and concentration. Respondents like Bureau heads with those expertises's related to finance and the TVET schools' officials and department heads were taken using purposive sampling technique as actual sources of information. The information was collected through 3 types of questionnaires (Region, Woredas, and TVET schools). Document analysis including annual abstracts and annual financial reports were consulted to see the current sources and the budget share of TVET schools. The collected data were analyzed mainly using percentages and rank order. The results of this study depict that the annual budget and internal income have the lion's share on TVET financing in the region. Even though the TVET schools have internal revenue, it is found to be insignificant and could not cover the operating expenses. In the region under the study, TVET is mainly a government investment. No method is devised to bring additional resources. The budget allocation mechanism is found to be traditional that discourages TVET schools to apply performance based budgeting. Lack of awareness and lack of data during budgeting were considered as problems uncounted the implementation of performance based budgeting. \ In addition, most TVET schools obtain below 25% of the budget requested. On the other hand, yearly budget preparation of the region is based on previous year's budget. This shows that problems encountered in the previous year's annual budget would probably prevail in the preceding years. In light of these findings the study concluded that, besides government budget subsidy, it is necessary to give due attention to diversify finance sources for TVET schools. There is no single or universal solution for financing TVET schools and no one method which can serve all sections of a society. Moreover, different financing mechanisms like vocational training fund, tax rebates and credits, cojinancing and others can be used as a cocktail to minimize the problem. Through these mechanisms, the Oromia regional government can shift the financial burden of providing TVET education to other sources like employers, individuals and local communities.



Education is not only a productive investment