In its fourth regular session, the House of Peoples’ Representatives endorsed 386.95 billion birr for next year’s national budget. Out of the total budget, 109.46 billion birr goes for the federal government as a regular budget and 130.71 for capital projects. Again 140.44 and six billion birr are allocated for States and execution of sustainable development projects respectively.
The budget was prepared by evaluating last year’s expenditure performance and this year’s fiscal policy objectives. As it was indicated by Parliament’s budget and finance standing committee, the draft budget plan was prepared by taking the government’s financial capacity and strategy to become self-reliant.
Moreover, due emphasis has been given to poverty reduction. As the numbers tell, states and capital projects have also received due emphasis. All in all, it can be said that the allocation of the budget prioritized the socio-economic objectives of the Growth and Transformation Plan for the next fiscal year.
As a country with a scarce resource, the responsible institutions have to be efficient enough in the utilization of the budget. This requires the setting up of a strict financial system to supervise the expenditure process.
As we all know, Ethiopia’s economic growth, which has been one of the fastest in the globe, is declining. In addition, the number of unemployed citizens has reached more than 11 million. The inflation rate is also severely affecting particularly the poorest section of society.
On the other hand, the country has lofty development objectives in GTP II which are approaching their final years. Hence, it is a must that better performances are registered in agriculture and industry sectors for the goals set in the plan to be met.
What is more, it is high time for the consultants, government officials, and members of the standing committee of parliament to exert maximum effort in making sure that the budget is utilized efficiently. Particularly, government institutions have to be cautious in making sure that their expenditures are planned and have a meaningful purpose.
Unnecessary and unplanned government expenditures are one of the main reasons for the inefficient utilization of the country’s scarce resources, and hence budget deficit.
As the Prime Minister told members of Parliament on Monday while executing projects, government officials should not bother about reports but actual performance on the ground. “They have to take care of the projects as their own children.”
Thus, time and again, government officials are expected to go to the field and follow up the execution performance in person. This, besides making sure that the budget is efficiently utilized, would make the government cross-check the quality so that the projects satisfy citizens in a sustainable manner.
When all concerned bodies discharge their respective responsibilities effectively, the country would be able to utilize the budget efficiently and finalize the development projects set out in the growth and transformation plan.
The Ethiopian Herald July 11/2019
