: Recurrent Budget utilization Efficiency of major budget holding Sectors

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Source: Researcher’s own work based on secondary data
Figure 4: Recurrent Budget utilization Efficiency of main budget holding sectors of Dawuro zone Finance and Economic Development Department. As it can be seen from figure 4 the budget allocated to the economic, social and administrative sectors in EFY 2004 was 13,494,830, 8,204,943 and 7,543,887Birr. The amount utilized was Birr 11,855,240.10, 5,499,316.37 and 6,591,443 respectively which constituted 87.85%, 67.00 and 87.37% respectively of the total. The EFY 2005 is a FY where effective utilization efficiency is observed in all the three sectors which is 95.75%, 91.48% and 96.49% respectively. A significant budget under spending of 33% (Birr 2,705,626.62) in
EFY 2004 was recorded in the social sectors. The main reason for the relatively lower efficiency was the late budget release of actual expenditures during and at the end of the
0 20 40 60 80 100 120 2004 2005 2006 2007 2008
total
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Recurrent budget Utilization efficiency of
major budget holding sectors(2004-2008)
Utilization efficiency) Economic sectors
Utilization efficiency(%)
Administrative sectors
Utilization efficiency) Social sectors
Utilization efficiency) total

74 budget year can improves the communication and increase fiscal transparency and accountability in financial management.
Generally, while the overall change in recurrent budget utilization efficiency of all the three sectors has increased from 2004 to 20008 EC, there appears to significant difference in budget utilization efficiency between the sectors over the five study years. Although, the utilization of efficiency in Economic sector has increased from 87.85% into in 2008. On the other hand the utilization efficiency of the social sectors has increased from 67.00% into in 2008. In the same way, the utilization efficiency of the administrative sectors has increased from 87.37% into in 2008. Even though, the efficiency of all the three sectors was observed falling.

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