The Move Towards Program Based Budgeting System In Ethiopian Public Agencies And Its Implications The Case Of Federal Ministries.

This study analyzes the process of moving towards program budgeting in Ethiopianrnpublic agencies and its implication on the budgeting system. The study focuses onrnidentifying reform needed for program budgeting system in Ethiopian public agenciesrnat federal ministries level, analyzing the attitude of employees towards newrnbudgeting system at the federal offices of the ministry. It also focuses on analyzingrnthe challenges and implication of program budgeting system in public agencies atrnfederal office of the ministries.rnThe study employed the mixed approach that is qualitative and quantitative researchrndesign to describe the respondent’s responses and to answer the research questions.rnSpecifically, the data was collected through semi-structured questionnaire whichrncontains both open-ended and closed questions. The study descriptively analyzes therndata elicited from surveys and documents. The data was presented in the form ofrntable and analyzed using frequency and percentage. Then the data interpreted basedrnon the analysis. Lastly, the findings derived from the interpretations.rnThe result of this combined research methodology reveal that there is no need ofrnnew organizational design for program budgeting. However, the study identified thatrnreform in financial management, linking program structure with the objectives ofrnorganizational structure, and new technologies are needed for the implementationrnof program budgeting. The study also reveals that there is a confusion andrnchallenges in implementing program budgeting. The study also identifies manger’srnresponsibilities in the system and implication of program budgeting on the publicrnexpenditure.rnThe study suggests the effective way which could be taken by the concerned bodyrnand Ministry of Finance and Economic Development in particular, to make therntransition to program budgeting and implementation of program budgeting. Finally,rnthe thesis forwarded: How the program based budgeting system will increase thernioutput of the public agency?, Evaluation of program budgeting in relation tornstrategic policy of the government, analysis and evaluation of analytical part ofrnprogram budgeting process in public agencies, and the area of incentives andrnmotivation to employeesrnin program budgeting, legislativernaspectrnandrnadministration aspect of program budgeting as the suggestion for further research

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