Tesfai, Ghebrehiwet (Ph.D)Fulea Desisa, Duguma2018-12-052023-11-082018-12-052023-11-082014-05http://etd.aau.edu.et/handle/123456789/14872Conditional grant allocation, distribution and utilization in Federal Democratic Republic of Ethiopia (FDRE) encountered various challenges which become obstacles to the intended objective (purpose) of the grant. This thesis is a comparative study that attempts to assess the mechanisms and/or formulas that are used for allocating; distributing and disbursing conditional grants through channel one and channel two federal transfers. Put differently, it devotes to examine the challenges faced and the impact of the distribution and disbursement of conditional grant on equity and budget autonomy of the Afar, Amhara, Oromia and Somali national regional states. The theoretical concepts of conditional grant, kinds, allocations and distributions were reviewed in line of this study problem. Methodologically, the study used both qualitative and quantitative eclectic approaches. The analysis part was supported by literature, legal and official documents by using instruments such as tables, percentages, averages and graphs. The findings of the study show that the allocation and distribution of conditional grant to the study areas was/is formula based but lacks fairness in its distribution while disbursement of conditional grants were made on performance (out-put) based. All regions examined did not receive the grant as scheduled due to their inefficient utilization of the budget and inefficient performance in meeting the objective of the project. The distribution of millennium Development Goal (MDG) uses the unconditional grant distribution formula which did not put in to consideration the unit cost of the projects among the regions examined. The General Education Quality Improvement Program (GEQIP) and Productive Safety Net program (PSNP) in per-capita distribution fevers to relatively developed regions as compared to emerging regions. The selection of eligible states of Urban Local Government Development Program (ULGDP) has tended to favor the relatively developed regions as compared to emerging regions under examined. The channel one conditional grants have resulted in less negative impact on regional budget autonomy and on equity but channel two conditional grants (loans and assistances part of the subsidy) highly affects regional budget autonomy and equity as it makes some regions losers and the others gainers. Finally, the thesis provides possible policy recommendations.en-USConditional grants, Allocation formulas, Distributions, Disbursements, FairnessThesis