PUBLIC BUDGETING
Date
2011-06-23
Authors
TEKLE, YEMANE BERAKI
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Abstract
Public budgeting is an area in which the zeal for economic development has been
particularly marked. The issue that is addressed in this study concerns the budget's
possibilities when it comes to operating as an effective instrument of development
and poverty reduction in Eritrea. The central question in the dissertation revolves
around the problem of how budget techniques and methods of resource allocation
should be designed in such a way as to promote economic growth to alleviate
poverty. Moreover, the budget should generate confidence between the participants
in the budget process. Since it is assumed that a budget must build on grounds of
fact in order to function as an effective instrument in the reconstruction and
rehabilitation process, particular attention is paid to the nature of the budgetary
dialogue.
The empirical material for the dissertation consists of public budgeting development,
i.e. the allocation of resources according to population base. Population-based
models of resource allocation have been introduced in the country for the
development of local services. The intention underlying here is that the country as
whole should enjoy conditions that are possible to fulfill the residents' needs for local
services. In the study the experience of population-based budgeting is examined.
The results show that the acceptance of the population-based resource allocation
system can be described, albeit some variations are there, as good. The study also
shows that the incentives for behaving in an economically rational way in Eritrea have
been strengthened, particularly as a result of greatly heightened budget discipline. As
regards the political effects of the budget reform, the dissertation provides a
somewhat more complex picture. The public budgeting in Eritrea can be described as
a success in political terms, in that it has given the politicians more control over the
scope of the budget
Description
MM - P&DM
Keywords
Public budgets, Economic development, Eritrea