Resource information
This Public Expenditure Review (PER), is
the seventh in a series of annual PERs for Ethiopia,
addressing issues of public expenditure management, relevant
to the government, and donors. As such, and as a result of a
shared understanding between the Government, and a core
donor group, the report shifts the emphasis from analysis,
to problem solving, and, from perspective of the federal
government, to the joint perspective of the federal, and
regional governments. The progressive fiscal toll resulting
from the border conflict, is examined within an economic
context, for although the government did contain the fiscal
impact of the conflict by financing defense expenditures
through budget contingencies, and other budgetary funds, it
appears fiscal limits have been reached, as the significant
recourse to domestic financing, and reduced capital
spending, jeopardize the expansion of basic social services.
Fiscal performance is reviewed, fiscal outcomes are
projected, and risks and alternatives analyzed, within the
context of an information systems for strategic expenditure
management, through performance indicators for budget
planning, and financial reporting. However, the report
identifies the need to provide technical assistance for
developing output, and outcome indicators, for building
databases, and for capacity building, which would clarify
acceptance by the government, of PER recommendations, and
its implementation. It is suggested that a Joint Review
Mission, based on the Annual Review Meeting, be adapted for
the PER process, to include an institutional involvement of
the regions, in identifying, analyzing, and implementing recommendations.
