Assessing problems and challenges in the implementation of the new budget reform in Tigray region: The case of Regional sectors.

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Date

2010-06

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Addis Ababa University

Abstract

Background: The Expenditure Management and Control Program (EMCP) is one of the .five s7lb-programs of the Civil Service Reform Program. The newly adopted budget reform is also one of the EMCPs launched by MoF!;;D, BoFED and DSA project in 7NRS in 2004 with the objective of designing reform ideas for improved and new .systems of budget management and control that can be used at the regional and woreda levels. Even though, there are considerable achievements registered in the reform implementation process there are still gaps because of external and internal factors affecting the effecliveness of the reform implementation process. Objectives: The general objective of this study is to examine the problems and challenges that affected the effectiveness of the budget reform implementation process. The ,Ipecific objectives are, to assess the capacity of implementer,I', to examine degree of accountability, transparency, and responsibility of different organs ensured by the reform in budget process within the selected sectors. Methods: The research design implementedfor this study is descriptive method, and the techniques of data collection were quantitative and qualitative data. The research area includes the budget Management Reform and challenges in its implementation in the BoANR, BoH, BoE and of the regiOn. The target population that this research tried to address comprised heads of the sectors, cost center heads and staff members having duties and responsibilities in budgeting and planning process of the sectors, the plan and budget department and focal person of the reform from BoFED, Economic advisor of the regional government and speaker of regional council. The total number of participants was 90 and the response rate was The frequencies of the responses were recorded, described and analyzed using sllmme,y tables. Results/Findings: In adequate remuneration and incentive problems resulting in high staff turnover. Low leader's attention and lack of clear and binding rules and regulations to each concerned bodies especially cost center level res1ilting the problem of accountability and transparency in budget processing are found to be the basic problems and challenges affecting the implementation of the newly adopted Budget Management Reform in the region. Conclusion and Recommendatiolls: In order to improve the current problems and challenges faced in the implementation of the reform, it calls political commitment and leaders attention on capacity building, and empowering the grassroot levels and each concerned bodies to play their role actively according to their dllties and responsibilities in budget processing,

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challenges in the implementation

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