Utilization in public organizations: a case study of dawuro zone finance and economic development department

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Sources: Researcher’s own work based on secondary data.
Figure 6: Capital Budget utilization efficiency of Dawuro zone Finance and Economic Development Department. As it can be seen from figure 6: the Capital budget allocated to the Dawuro zone finance and economic development department in EFY EC was 7,215,649, 10,992,000,
8,000,000, 16,000,000 and 32,000,000 Birr respectively. The amount utilized was 6,349,612,
9,892,800, 7,440,000, 11,680,000 and 29,760,000Birr respectively which constituted total efficiency of 73% to 93%. The significant under spending of 27% (4,320,000) Birr in EFY was recorded in capital budget. The main reason for the relative lower efficiency was late budget release, length of bureaucracy and lack of skilled planning experts.
88 90 80 73 93 83 0
10 20 30 40 50 60 70 80 90 100 2004 2005 2006 2007 2008
total
Ut
il
izat
ion
e
ff
icie
n
cy
in
%
Capital budget utilization of DZFEDD
(2004-2008EC)
Utilization efficiency (%)

78 In contrast the regular budget allocation in Recurrent and Capital budget the share of capital budget was insignificant as compared to the recurrent budget. It can be observed from the above table 4.4.1.1 and 4.4.2.1 the recurrent budget increased from EFY 2004 million Birr to the total of five year in EC, million and similarly the capital budget increases million Br to the total of five year in EC million Br respectively. Even though the trend of regular budget allocated to the three main budget holding sectors within recurrent and capital budget have been studied was not uniform. Social sectors were increased from million to nearly million over the five years with an average rate of increase in million Economic sectors also increased from million to million over five years with an average rate of increase million and administrative sectors has increased from million to million over the five years with an average rate of increase in million similarly the amount of budget allocated to the Capital Budget has increased from7.2million to million over the five years with an average rate of increase in million. In contrast 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.

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