Strength of the Dawuro Zone FEDD in regular budget

86 Improve sectoral financing and budget execution calls (budget request)
for the participation of different actors in any (Budget holding sectors) institutional setting. One of such actors is responsible budget users. They can play a pivotal role in helping the financial management part to achieve an effective and efficient budget planning and execution (budget requests. Within a mean score value of 6.25 responsible budget users were among the second most important factor mentioned as the Dawuro zone Finance and Economic development departments strength in regular budget management and utilization. Inmost cases, the Dawuro zone budget process in generally and particularly sectors budget allocation process is not participatory. The budget decisions are made by the sectors top political leaders and the process exclusively by the (political leader) executive. Unfortunately, most people have traditionally been excluded from budget decision making and monitoring. Recently however, though monitoring of budget process is still in its infancy there is now considerable experience available in undertaking monitoring. As it can be observed from the above chart strong budget control and monitoring is listed as the strong side in the Dawuro zones sectorial financing and budget execution with mean score of value 4.5

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CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1. Introduction
This chapter presents a summary of the key findings of the study as well as the conclusion and recommendations for further research
5.2 Conclusion
. Regular Budget allocation has increased Generally the total amount of regular budget allocated in recurrent budget to Dawuro Zone Finance and Economic Development Department has increased from some 29,243,660, million Birr in 2004 fiscal year to
60,630,403, million Birr in 2008 i.e. nearly 100% increased (doubled in five years. In the same line the allocation of capital budget to the Dawuro zone Finance and Economic Development has also increased from, 215,469 million Birr in 2004 fiscal year to 32,000,000 million Birr in EC. In contrast the regular budget allocation in Recurrent and Capital budget the share of capital budget was insignificant as compared to the recurrent budget. Though the amount of budget allocated in Capital budget compared with the recurrent budget the more priority is given to recurrent budgets. Based the above finding, one can be concluded/understand / the Dawuro zone gave a smaller resources envelope to the capital budget compared to the recurrent budget. This indicate that in Dawuro zone Finance and Economic Development Department there is no great emphasis is given rather than recurrent budget.

88 However the trends of regular budget allocated to the three main budget holding sectors with recurrent and capital budget have been studied was not uniform. Social sectors has continuously increased from million to nearly 23.12milion over the five years with an average rate of increase in 2.98milion; Economic sectors has also increased from 13.49 million to million over five years with an average rate of increase million and the amount of budget allocated to administrative sectors has increased from million to 16.85 million over the five years with an average rate of increase in 1.86 million. Similarly the amount of budget allocated in capital, budget has increased from million to million over the five years with an average rate of increase in million. In contrast the amount of budget allocated capital compared with the recurrent budget more focus is given to recurrent budget. However the Dawuro zone gave a smaller envelope to the capital budget compared to the recurrent budget. One important problem often expressed by budget holders with respect to budget allocation was the lack of clarity on the major criteria used by the Dawuro Zone Finance and Economic Development Department and sectors when allocation of regular budget to sectors. This according to some respondents has created a vacuum for subjectivity of budget allocation by the Dawuro Zone Finance and Economic Development department and sectors Administrations In terms of budget utilization efficiency the overall budget utilization of efficiency of the
Dawuro Zone Finance and Economic Development Department has increased over the last

89 five years. However, the level of efficiency of all the three budget holding sectors was not the same. In particular, the budget utilization efficiency of social sectors was below the Administrative sectors and compared to Economic sector in the most of the FYs. The main reason for the relatively lower efficiency was the late budget released especially for social sectors in the 2004 fiscal year. Another probable reason was lack of financial management skilled manpower was also the problems for the low efficiency. Assessments of the major factors/problems hindering regular budget utilization efficiency of studied sectors showed important indicators for future actions of the Dawuro Zone FEDD: in the administration poor budget planning and management by budget holding parts, lack of diligence of sectors heads/decision makers and late budget release from FEDD to the sectors.
On the other hand the most important problems identified by the Administrative sectors were Lengthy bureaucracy, poor budget management and poor information exchange and reporting system. The social sector in contrast has identified late budget release, poor budget planning and management by budget holders and poor information exchange. Similarly the most important challenges in capital budget late budget release, length of bureaucracy and lack of planning. The results imply that the Dawuro Zone Finance and Economic Development Department should address these problems in each sector. When it comes to budget administration and challenges of the Dawuro ZoneFEDD; the studied budget holders identified that lack of transparency partiality/bias; lack of modern financial and technique and lack of control/misuse of budget were the top four problems.

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