Federal Budget Allocation And Control In Ethiopia Challenges And Options

The research work attempted to look into the budget allocation andrncontrol practices of the federal government of Ethiopia to assess andrnaddress the challenges faced by the major budgetary actors (HPR,rnMoFED and OFAG). Ethiopia as one of the poor countries is striving tornensure sustainable development by allocating its scarce resourcern(budget) to address the basic social and economic needs of the people.rnThe intervention of the government for the provision of these basicrnservices is very essential and to achieve the development objectives of therncountry, there should be efficient and effective budget allocation andrnutilization in the country. It was, therefore, necessary to examine therncountry's budgetary process focusing on the major budgetary actors.rnThis study, conducted a survey to generate the required data andrninformation from the targeted government institutions. It was found outrnthat the current budgetary approach (line item approach) of the countryrnhas not created a conducive environment to link the budget with thernmajor goals and objectives of public agencies. If was also realized thatrnthe budget and public accounts standing committees of the House ofrnpeoples' Representatives lack adequate institutional capacities torneffectively carryout their roles of analyzing and controlling budgetrnallocation and implementation of the country.

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