Biblio

In some developing countries because of weak expenditure management process that have room for an
exaggerated request, the spending is likely to be for less priority. In these circumstances, the best reaction would
be to improve expenditure budget preparation. Since expenditure management is easy at budget preparation than
later during the execution of the budget. This article discussed Public expenditure management and control in
Ethiopia. The management and controlling of public financial resources is crucial because society’s needs and
demands are unlimited whereas resources are limited in nature. The problems and controversial issue related to
public expenditure management and controlling are reflected in the budget preparation, approval, execution, and
Audit phase of expenditure management cycle. Owing to these problems, this study used non parametric chisquare
goodness-of-fit techniques for testing the hypotheses. Therefore, the result showed that there is a problem
of linking the work plan with expenditure budget preparation. It is also revealed that purchasing of goods and
services is not based on the annual action plan by sectors. In other word, this indicated that there is a problem of
budget preparation and execution. On the other hand, In relation to budget approval, the result indicated that
Legislature has effective systems of check and balance on public expenditure. The test was also undertaken to
check auditor’s satisfaction in relation to the support they get to conduct their task. The test result indicated that
auditors have a problem of motivation with the financial and material support to carry out audit work to achieve
their objectives.. Finally, this paper forwarded the following recommendations: first, there should be further
strengthened the program budgeting system introduced by MOFED in 2004. Second, to minimize rush spending,
especially, yearend purchasing, it is good to take the experiences of Australia that carries over up to 10% of the
remain expenditure to the next fiscal year. Third, the national anti corruption institution should further
strengthened in relation to expenditure management and control. Finally it is better for the legislature to
reconcile what is reported and what is actually happened at the grass root level. In addition, the auditors should
be properly encouraged to do their job effectively and efficiently.