Mulugeta, Solomon (PhD)Abera, Yetmgeta2018-09-192023-11-182018-09-192023-11-182012-06http://etd.aau.edu.et/handle/12345678/12002In the developing world the level oj development remained unsatisJactory partly due to insufficient access to financial resources, poor utilization and management oj the resources in the public sector. To contribute its part the general objective oj this study is to examine the pelformance oj Medium Term Expenditure Framework (MTEF) and its outcome on budget system oj Addis Ababa City. The thesis is designed to Jollow descriptive and exploratory type oJresearch method. Data have been collectedFom both primmy and secondary sources in order to generate relevant and valid result. Accordingly both structured and semi-structured questionnaires and interviews were implemented to access primary data Fom 76 respondents oj 22 public bureaus and 5 sub citiesThe findings oj the analysis revealed that MTEF is integrated in to the budget process; improved reallocation oj budget towards poverty oriented sectors based on the city's strategic plan when compared to the pre-MTEF implementation period. Acknowledging some benefits oj MTEF, its overall contribution to the budget system observed to be limited. Budget is highly input oriented rather thanJocusing on perJormance. There is no unit cost and standardization oj activities to estimate operational and project costs in the budget processOn the basis oj the empirical finding, the linkage between MTEF and the budget trend indicate that there is improvement on both revenue and expenditure perJormance. However, due to the Jact that many exogenous Jactors are left out only MTEF may not be attributed to these improvements. It is concluded that coupled with weak capacity oj the city, a fiill-fledged MTEF, is not sequenced by overall PEM reJorm restricting its Jull benef it. As a result, in order to improve the budget system, it calls Jor Jurther reJorm, which includes redesigning a city level MTEF, Jollowed by sequences reinJorcing reJorms to bring successful paradigm shift.enMedium Term Expenditure FrameworkThesis