Ministry of Finance (MoF) reveals to public institutions to be realistic on their budget proposal particularly on this critical time.
With the coming year 2021/22 budget period fast approaching, the relevant public offices are discussing with the responsible body to get their preferred amounts for their recurrent and capital budget for the operation that will be executed in the coming year.
On the discussion called by Revenue, Budget and Finance Standing Committee for the coming year budget inquiry of democratic institutions that are responsible for the House of Peoples’ Representatives, have gone on to defended their proposal. While some of them have not tabled their proposals for MoF as per the financial calendar.
Teferi Demeke, Director of Budget Preparation and Administration Directorate at MoF, at the inquiry session said that for coming year that will start on July 8, the budget would be more realistic since the country should have to undertake several priorities.
“Our resource is limited but the demand is very high like any other country. We have to harmonize the demand and the actual resource and give attention to priorities like poverty reduction sectors, which takes up to 70 percent of the annual budget,” the prominent budget experts explained on his response for the budget proposal that was tabled by democratic institutions.
“For the past several years the country revenue is affected in different reasons,” he reminded and adds, “The situation starting from 2016/17 that was hit with political instability reduced the country’s revenue generation which has now been stung some more by the COVID 19 effect. The planned expenses in public offices are supposed to roll to the next year’s budget for execution because of lack of resource, this time round.”
He said the law enforcement for this year has also come up with expenses and humanitarian aid which has also increased unlike other periods.
“The coming year’s budget is compounding with the past years financial burden. We have to see the situation seriously and to be realistic to accelerate the accomplishment of ongoing commitments and focus on developmental projects.”
Teferi explained that the resource envelop is regulated under a single coffer for 190 public bodies due to that any institutions whether they are responsible for the federal government or the parliament are supposed to table their proposal on time.
The budget is regulated by macro economic and fiscal framework and public bodies are supposed to consider the country’s resources.
At the budget inquiry Ethiopian Human Rights Commission, Federal Ethics and Anti-Corruption Commission, National Electoral Board of Ethiopia, and Secretariat of the House of Peoples’ Representatives have defended their budget proposals.
The Ethiopian Human Rights Commission has requested 211.6 million birr for the 2014 (EC) budget, while the budget projection given by the MoF is 103 million birr. The Federal Ethics and Anti-Corruption Commission requested 300.8 million birr that surpassed by 191.2 million birr compared with MoF maximum limit.
The Secretariat of the House of Peoples’ Representatives requested 442.2 million birr and MoF estimate to be 337.9 million birr.
NEBE is expected to receive a budget ceiling of 92 million birr from its demand of 192 million birr.
Teferi supported some of the democratic institutions demand but suggested some others to match with MoF’s projection and said that institutions should carry out their work efficiently and budgeting, taking into account the country’s economic potential.
He urged institutions to reconsider as they have made exaggerated budget requests and to provide adequate documentation and explanation if there is any work that requires more than the budget allocated.
Teferi also said that there is a delay on some institutions to come up with their proposal on financial calendar that may affect the process. “The draft budget proposal for the 2021/22 supposed to be tabled for the Council of Ministers (CoM) by the third week of May as per the calendar,” he insisted the democratic institutions to hurry on their preparation.
As per the financial calendars, MoF would send maximum budget limitation proposal by February 8 for all public institutions and public institutions should come up with their proposal by 45 days based on the limitation given by MoF and it finalize the drafting of the coming year budget bill within 60 days and sent to CoM by the third week of May and the council evaluate it within two weeks and send it to parliament for further evaluation and ratification.
Teferi told Capital that their office would give its entire effort to table the proposal on time for the higher body.
Yayesh Tesfahunegne, Chairperson of the Standing Committee, told Capital that through the Office of House Speaker, the democratic institutions have informed to accomplish their preparation on time.
Ombudsman and the Office of Federal Attorney General are also responsible for the parliament.
NEBE and Ombudsman are democratic institutions that have not filed their proposal for MoF, while they sent to Parliament.