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ETHIOPIA DECENTRALIZATION SUPPORT AUTHORITY (DSA)





Objectives

The Decentralization Support Activity (DSA) project began in January 1997 and is scheduled to end in November 2006. The overall objectives of the budget, accounts and budget planning reforms are to:

  • Strengthen the capacity of the public finance management system to manage public sector financial transactions;

  • Improve the capacity of public sector managers to use information about financial transactions to permit better control;
  • Develop, on the 'platform' of improved accounting and financial management and control systems, enhanced budget planning of the public sector.

Through mid-2004, the DSA project has introduced the budget reform in the federal government and three large regional governments. The accounts reform, which is introduced a year after the budget reform, has been introduced in the federal and two large regional governments. The project has trained over 28,000 government staff in budgeting, accounting and, budget planning. Computer systems have been developed to manage these financial systems.The project was recently awarded a 29-month multi-million dollar extension from USAID with funding from the Netherlands Aid and Irish Aid agencies. The objectives for this fourth phase of the project, 2004-2006, are to:

  • Complete the introduction of the financial transaction platform (the budget and accounts systems) in all regions and sub-regional governments of the four large regions.
  • Provide follow-on support to regions in operating these new systems.
  • Institutionalize the reforms within government.
  • Introduce budget planning to improve the accountability and performance of public expenditure.

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