The Amhara Regional Report : Public Finance Review

Abstract

The objective of this study is explore
 in depth public finance issues and their impact on
 decentralized service delivery at the regional and woreda
 level in Amhara region. The study is carried out as part of
 the federal and some regional case studies designed to
 examine effectiveness of public finances of sub-national
 governments. This study was expected to (i) review the
 institutional arrangement for managing public finances at
 the regional level including policies, budgetary
 institutions, systems and processes; (ii) assess the level,
 trend, and composition of public spending (both functional
 and economic classification) in per capita terms over the
 past five years and identify key achievements and
 limitations; (iii) assess the level, trend, and, composition
 of revenue at the regional level and examine the financing
 framework, including ways to increase local revenue
 generation capacity; (iv) assess the role of external aid in
 supporting decentralized service delivery and the
 sustainability of the program in absence of external aid;
 (v) review the planning and budgeting process as well as the
 quality of PFM system; and (vi) data permitting, establish
 the link between the level of spending and the outputs and
 outcomes for selected sectors. The study used standard
 public financial process review methodologies used for
 undertaking PEFA assessments. The report reviewed the
 various studies, plans and performance reports of the
 various sectors in the regions between EFY 1997 and 2001. In
 addition, key informant interviews were carried out at
 bureaus levels and woreda offices of education, health,
 water, agriculture and rural development, finance and
 economic development, revenue, General Auditor, rural road
 and woreda administrations.