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Ethiopia The Budgetary Process
During the imperial period, the government initiated the
budget cycle each year on the first day of Tikimt (October
ll) by issuing a "call for budget proposals." Supposedly,
the various ministries and agencies adhered to deadlines in
completing the budgetary process. These organizations
submitted current and capital budget proposals to the
Ministry of Finance; the Council of Ministers reviewed all
requests. The ultimate power for approval rested with the
emperor.
After the revolution, the government developed new
guidelines on budget preparation and approval. Addis Ababa
issued annual budget "calls" in July or August, with
preliminary information and guidance. The new guidelines
required ministries and agencies to complete their proposals
by January, when budget hearings would begin. The hearings
included discussions with ministries in which requests would
be aligned with allocations, and justifications for requests
would be evaluated. After the ministries submitted their
current budget proposals to the Ministry of Finance for
review, with a copy to the ONCCP, the ONCCP executive
committee would approve, disapprove, or change the requests.
Conversely, ministries would send capital budget proposals
to the ONCCP with a copy to the Ministry of Finance. The
ONCCP would conclude a similar process of budget hearings,
which would include a review of adherence to guidelines,
justifications for requests, and conformity to investment
priorities identified in the national plan. Thus, under the
new system, the Ministry of Finance developed the current
budget, and the ONCCP developed the capital budget. Draft
current and capital budgets prepared by the Ministry of
Finance and the ONCCP, respectively, would then be
reconciled with estimates of revenues, domestic resources,
and other sources of funding such as loans and aid. The
consolidated current and capital budgets then would go to
the Council of Ministers for review and recommendations. The
final approval was the head of state's prerogative (see
Banking and Monetary Policy, this ch.).
Data as of 1991
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