An assessment of the challenges and opportunitiesof implementing program budgeting systems (PBS) in two selected Federal Ministries in Ethiopia

Abstract

This study delves into the principles and processes of sustaining the implementation of program budgeting system (PBS) in the two ministries in Ethiopia, namely, Ministry of Finance and Economic Development (MoFED) and Ministry of Education (MoE). Drawing data from field survey, it attempts to show the progresses made in adopting PBS andthe extent to which the system is understood and complied with in the government agencies. Down the road, the paper also puts premium on the prospects and the challenges of PBS in the intimated federal ministries. The paper employsa mix of qualitative and quantitative approach to generate data that have a significant bearing on diagnosing facts ascertained through semi-structured questionnaire and in-depth interview, with the latter specifically being used to elicit information from senior staff and experts in the field. The finding demonstrated that quite impressive progresses have been registered in revising the program budget manual and training modules, significant program budget training, and piloting of PB at federal level and gradual improvements on the budget submission formats. Equally important, however, there are challenges that deserve serious attention

Keywords: program budgeting system, Ministry of Finance and Economic Development, Ministry of Education, performance indicators, monitoring, evaluation, Ethiopia.