In the developing world the level of development remained unsatisfactory partly due torninsujjicient access to financial resources, poor utilization and manage men t of thernresources in the public sector. To contribute its part the general objective of this study isrnto examine The role o{ Medium Term Expendilure Framework ollihe semice de/i/Jery a/" housi".fjrnand w(ller seruices: The Case o{ Addis Ababa City. The thesis is designed to followrndescriptive and exploratory type of research method. Data have been collecteel from bothrnprimary and secondary sources in order to generate relevant and valid resull.rnAccordingly both structured and semi-structured questionnaires and inlerviews werernimplemenled to access primary data.rnThe st.atistical data's indicate thai the city because of the implementation of MTEFrnobserved enhancement in its fiscal pe'formance, brought reprioritization in budgetrnallocation and allocated more funds for water, and houses capitals expenditu re. On thernother hand, the city with the adaptation of MTEF could not maintain fiscal stability anelrna substantial amount of budgets are commonly transfelTeel from their inteneleel purposesrnduring the budget year after budget approval. Besides, the city did nol put into place arnsystem for monitoring and evaluating the pelformance of MTEF and lacks two majorrnsteps in preparing the MTEF. which are critical in providing autonom.ous anelrnpredictability 10 sector bureaus anel sub ciUes. All these facts are to som.e extent inrncontradiction with what was actually perceived by city mwwgements as a result onlyrnpartially the city MTEF is delivering its perceived roles and benefits.