Trends in Regular Budget Allocation

66 budget years while 99 out of 178 (55%) have stated that the regular budget allocated to their sectors has increased over the five studied fiscal budget years. However, there were some slight differences among the respondents on the rates of budget increment trends over the five years. Evidently, more than 33% (24 out of 72) respondents from the Economic sectors stated that the budget increase was high while 18% (out of 65) from Social sectors stated that the budget was increased, and 9% (4 out of 41) from the Administrative sectors stated the budget increase was highly increased. Similarly, more than 65 %( 47 out of 72) respondents from the Economic sectors stated that the regular budget allocated has increased, while 61% ( 40 out of 65) respondents from the Social sector stated the regular budget allocated has increased and 29% (12 out of 41) respondents from the Economic sectors stated that the regular budget allocated has increased. On other hand only 12%(22 out of 178) and 9%(17 out of 178) respondents state that the regular budget allocated to their sectors over the five studied fiscal years has remained more or less decreased and unchanged respectively. Despite the overall positive response of the Dawuro zone study sectors surveyed on the increasing trend in the amount of regular budget allocated to their respective sectors, their views on the adequacy of the budget allocated over the five EFY with respect to the volume of work allotted to their sectors were differing. As it was possible to catch the views of the respondents through survey questions number 2 and 3 substantial number of the respondents have stated that the amount of the new budgets added to the regular budgets of the sectors was not adequate enough to effectively carryout the new workloads and activities of the sectors

67 that are building up every year due to the continuous growth and service delivering of the
Dawuro zone and its Economic and Social duties. This gap of budget in spite of the overall increment was particularly voiced by respondents in Economic and Administrative sectors. In contrast a few respondents have stated that the amount of the new budgets added to the previous regular budgets of their sectors were fairly adequate to effectively execute the workloads and activities allocated to the sectors. Nevertheless, the responses of most of the survey respondents were alike when asked about the use of standard criteria and transparent process by the Dawuro zone Finance Economic Development Department in allocating regular budgets to different sectors. Apparently, most of the respondents stated that they do not think (or are not aware of) the Dawuro zone Finance Economic Development Department has any standard criteria for regular budget allocation to the different sectors such as performance-based allocation. They argue that the principles used by the Dawuro zone Finance Economic Development Department for regular budget allocations are partly traditional (based on previous year budget utilization) or not clear and not transparent to the sectors. As result, the rate of budget allocation increments for sectors with annually increasing workloads and those with more or less the same annual volume of work receive similar budget allocation treatments. This has sometimes created budget deficits some sectors hampering the effectiveness of the sectors while other sectors return unspent budget to the BoFED every year. In order to overcome the budget allocation problems, the survey respondents suggested that the Dawuro zone Finance Economic Development Department should adopt to consider four sub-development indicating sectors are agriculture, education, health and water sectors,

68 modern and efficient budget allocation criteria and guideline that takes into account the performance of each sectors against its objectives rather than depending on the amount of utilized in the previous year which does not indicate if the budget was spent for the specific job or other purposes. In practice the solution suggested by the respondents would mean that sectors who performed better in providing high quality in generating economic value, delivering social services and to create entrepreneurship should receive higher budget allocation rates than other sectors other factors such as the number of educated employee or number of staff in each sectors to support lower structures of their respective government organization are sectors constraints.

Download 0.82 Mb.

Share with your friends: