Budget administration and management problems

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Table 4.6.1: Budget administration and management problems
Problems Main budget holding sectors Partiality bias Lack of transparency Breach of financial rules Lack of accountability Inadequate knowledge and skill Lack of modern financial technique Lack of control/misus e of budget Economic Sectors
7.51 8.09 3.11 3.02 3.1 5.34 4.76 Social sectors
8.9 7.8 1.22 7.11 2.0 4.15 6.5 Administrative sector
2.0 2,2 1.08 3.33 4.00 6.78 4.80
Source: Researcher’s own Computation 2017
Lack of transparency and accountability are among the major budget administration problems in Dawuro Zone FEDD with mean score value of 8.09 and 3.02 for Economic sectors, and
7.11 Social sectors and 2.2 and 3.33 for the Administrative sectors respectively. Improved information and evaluation systems (especially with regard to budgets) are necessary if the different sectors are continually assesses not only adequacy of budgets but also the efficiency and effectiveness with which expenditures are being made. At the moment, information and

83 monitoring systems of the Dawuro Zone FEDDs are weak. This is because of lack of modern financial recording technology. The budget administration management problem is further aggravated by lack of control misuse of budget, inadequate knowledge and skill in budget planning and partiality/bias in budget allocation. Among the major problems there is a relatively considerable good experience across all sectors particularly in the social sectors. Generally, the Dawuro Zone FEDD financial management systems in recurrent and capital budget are not well strengthened, through better resource planning, improved transparency and auditing. The participation of users in the budget allocation processes still in its infancy which makes budget transparency and accountability to be weak. Furthermore, the Dawuro Zone
FEDD financial management systems lack well developed modern database onto finance and skilled manpower

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Source: Research Finding complied 2004-2008
Figure 7: responses of regular budget holders over budget allocation trends As show in the chart, 55% of respondents noted that budget distribution across sectors and within sectors in the last five years is below satisfactory. 24% of respondents felt that there Above satisfactory
4%
Satisfactory
17%
Fairely satisfactory
24%
below satisfactory of responses on level of regular budget allocation changes over the last 5 years

85 was Fairley satisfactory regular budget distribution across sectors and within sectors in the last five years. Budget allocation changes in the last five years in the three selected sectors was satisfactory for 17% of respondents while only 4% of the respondents felt that there were above satisfactory budget allocation change in the last five years in all sectors)
Sources: Research Finding compiled 2004-2008.
Figure 8 strength of the Dawuro ZoneFEDD in regular budget management and utilization The extent to which improved sectorial financing and budget execution will be realizable depends on a number of factors, one among such factors is skilled and efficient financial management part. Thus, having such skilled and efficient financial management part was mentioned as one of the strength in regular budget management and utilization with mean score value ranking of 7.2.
7.2 5.3 4.5 2.7 6.25 0
1 2
3 4
5 6
7 skilled and efficient financial management part
Suportive administrative
Strrong budget control and management
Modern budget recording and communication systen
Responsible budget user

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