Factors Affecting Budget Allocation to Health Sector (Case of Woredas in East Wollega Zone)

Hashim Tune Sado

doi:10.7176/rjfa/10-9-04

Abstract

The study focused on assessment of the factors affecting budget allocation to health sector, Survey of selected woredas in east wollega zone. Surveys of budget officials, interview with finance managers and documentary analysis used. The data was analyzed through us of SPS. The results reveal that, the factors affecting budget allocation to health sector are; number of: beneficiaries, Health centers, Clinics, Health posts, health college, staff by profession, and for Administrative and general service. But the variables are not supported by formula rather the budget allocated by budget official’s judgment based on budget amount available. Based on the finding, it is recommended that the woredas should implementation all factors in the allocation process practically, use these factors with methods, allow woredas to share experience to each other, provide training for staff periodically. Keywords: Budget officials, Budget allocation, Factors, Health Sector, Woredas DOI : 10.7176/RJFA/10-9-04 Publication date :May 31 st 2019

Highlights

The Ethiopian experiences with respect to the budget system have not been significantly different from experiences of other developing countries
From 1995 to 1997 EFY Oromia Regional State allocated budget to woredas as “Block Grant” to achieve the development objectives of the region based on the methods that consider three basic elements: Population size, Level of development and Revenue generating capacity of woredas. This grant formula does not explain the relationship between the weight of policy indicators and expenditure needs of woredas and Parameters used in the methods do not indicate expenditure need of Woredas to provide standardized public services
The study results showed that the factors considered in allocating budget to health sectors are number of: health centers, clinics, health posts, health staff by profession, expected health beneficiaries to be served, private health center, and actual financial expenditure for salary and operation for the previous year(s)

Summary

Introduction

The Ethiopian experiences with respect to the budget system have not been significantly different from experiences of other developing countries. From 1995 to 1997 EFY Oromia Regional State allocated budget to woredas as “Block Grant” to achieve the development objectives of the region based on the methods that consider three basic elements: Population size, Level of development and Revenue generating capacity of woredas. This grant formula does not explain the relationship between the weight of policy indicators and expenditure needs of woredas and Parameters used in the methods do not indicate expenditure need of Woredas to provide standardized public services. The new methods is designed and applied to tackle such problems and catalyze the rapid development endeavor of the region which is unit cost approach; since 1998 EFY (BOFED, 2011)

Objectives

Methods

Results

Conclusion