The main problems and controversial issues related with government budget are reflected in thernbudgeting processes, particularly during budget preparation and implementation stages. To thernbest of the researcherâ€™s knowledge, there is no document that reports a study on the probablerncauses that may hinder the preparation and utilization of budgeting in the Afar NationalrnRegional States Government. This is a major motivation to carry out this study. Thus, the generalrnobjective of the research paper is to assess the budget preparation and utilization of the Financernand Economic Development Bureau of the region and the study was designed to assessrnmethods and processes of budget preparation in Afar National Regional State of selectedrnBureaus, to examine effectiveness and efficiency of budget utilization and to assess budgetrnmanaging, monitoring and control system and to investigate challenges that has been facingrnduring budget preparation and utilization. Three out of eleven main bureaus were taken and fourrnkey informants were selected from each bureau with a total of 40 respondents and in addition,rnsix budget experts were also included in collecting primary data through structuredrnquestionnaire. More of the qualitative analyses demonstrated that there was no accountability inrnbudget utilization and Lack of adequate and experienced budget experts was other issue thatrncontributes to worsen the problems and also there is no evidence based evaluation mechanismsrnin the budget utilization at all Bureau under BOFED. Therefore, in order to improve budgetrnpreparation and utilization in Afar National Regional States Finance and EconomicrnDevelopment Bureau, it calls for taking any possible and remedial actions in the subsequentrnyears. The study has been applied mixed research methods and used simple statistical tool tornpresent, interpret and analyze collected data.rnKeyword: - budget preparation, budget utilization and budget