Utilization in public organizations: a case study of dawuro zone finance and economic development department
Budget allocation process in Ethiopia Government organization
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| 2.6 Budget allocation process in Ethiopia Government organization Public budgets and expenditures are the means through which public policies are translated into tangible and targeted developmental actions. Government decisions about how to allocate and spend financial resources have a direct impact on the well-being of citizens. However, the misallocation, wrong prioritization and mismanagement of public funds pose a tremendous challenge for the efficiency and effectiveness of development interventions and poverty reduction. Thus continuous appraisal of public budgeting and financial management are essential for promoting transparency and accountability with regard to public finances, building safeguards against corruption and ensuring that public monies are allocated equitably so that the interests and needs of the public are adequately addressed. In budget preparation, from a microeconomic or macroeconomic prospective, well consideration of the public budget allocation and utilization is vital, not only just to exaggerated the proposed spending but to be able advise police makers on the and desirability of specific budget proposal. Because, it is much easier to control government expenditures at the upstream point of budget allocation than later during the execution of the budget (Potter el.al 1999). To understand the budget preparation process in a given country it is important to 44 a) Know whereto find the rules governing the budget preparation process b) From those rules, identify who has the responsibility for what elements of the budget preparation process c) Assess the basic soundness by judging the budget preparation system against certain international accepted standards or budget principles. As cited in Leulseged Ageze(2001) following the principle that budget should comprehensively manage public expenditure in all stages of review, approval and appropriation a comprehensive budget is prepared and presented every year. Executive budget preparation at the Federal Ethiopia has to pass through the following six stages where its principal tasks are related to each other These stages are 1) Preparation of the budget 2) Subsidy budget notification, 3) Budget call 4) Request of the budget 5) Preparation of recommended budget 6) Recommendation of the Budget The time of each phase of the budget process various from one jurisdiction to another and same time, from year to year. As national level, development of budget proposal typically begins approximately 18 month before the budget is to take effective. Instate and local Governments, the lead time is typically shorter the development of proposal usually began at least 6 to 12 month before the budget take effective. (Noor, 2012) 45 According to (Anwar Shah, 2007) expenditure budget preparation is often viewed as a predominantly an executive role and includes the planning sometimes referred, to as pre- preparation, and the linkage of plans through a medium Term Fiscal framework (MTFF) to Medium Term Expenditure Framework for annual budget, establishment priorities and resources spending envelops Falk(1994) state that budgets are financial expressions of a country’s plan fora period of time. It tells where and how the organization will spend money and where the money will come from to pay these expenses. He adds that budgets set limits. Andrews and Hill) says that budgets also provides the assurance that the most important needs of a country are meet first and less important needs are different until there are sufficient funds into pay for them. Download 0.82 Mb. Share with your friends:
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