Ethiopian fiscal policy pdf file

Republic of ethiopia on september 26, 2016, the executive board of the international monetary fund imf concluded the article iv consultation1 with ethiopia. Pdf this paper investigated the macroeconomic effects of fiscal policy shocks in ethiopia using a bayesian vector auto regression model. Any organ of government shall, in the implementation of the constitution, other. It begins the year on august 29 or 30 in the julian calendar. Pdf the macroeconomic effects of fiscal policy shock in ethiopia. The role of fiscal policy in the longrun growth process has been central in macroeconomics especially since the appearance of endogenous growth models. Among the most important is the recognition that fiscal and monetary policies are. An economic analysis of fiscal federalism in ethiopia. Fiscal policy and economic growth in ethiopia getachew petros osebo lecturer, department of the economics, wolaita sodo university p. Economic policy analysis this site presents an analysis of the ethiopian governments economic policies compared to a. The theory of fiscal federalism fiscal federalism refers to a process of distribution and redistribution of fiscal decisionmaking power across multilevel governments. Fiscal policy is how congress and other elected officials influence the economy using spending and taxation.

The ethiopian economy is still largely on subsistence level, and in spite of some progress made, ethiopia has. Fiscal policy is one of the basic instruments being used for stabilizing and to bring about growth in the economy in a desired way through enforcing monitoring mechanisms. Pdf the macroeconomic effects of fiscal policy shock. Fiscal policy, public investment and economic growth in ethiopia. Monetary fund imf to adjust global growth projections. In recent years, the fiscal policy measures of the government has mainly. Prime minister pm abiy ahmed took office in april 2018, catalyzing. The grand ethiopian renaissance dam will not only benefit ethiopia but the downstream countries of.

On the one hand the national bank of ethiopia does try to follow announced target before 200607 the national. A country financial accountability assessment cfaa is a diagnostic tool designed to enhance knowledge of financial accountability arrangements in the public and private sectors. The home office exchange rate policy applies the bloomberg opening rate as the base exchange rate when taking payment in any currency other than sterling. Pdf the current state of ethiopian financial sector and. Fiscal policy is a key policy tool that governments can use to mobilize domestic resourc es and allocate them to the p ursuit of socioeco nomic development objectives carmignani, 201 0. Government spending for economic growth in ethiopia. Ethiopian calendar is the official calendar of the government of ethiopia based on old alexandrian or coptic calendar. Copies of this report are available to the public from international monetary fund. What is new after a decade and half strategy of gradualism in reform, 20012017 working paper pdf available. Regardless of these differences, however, the necessity of a. Within the governments mediumterm economic programme, fiscal policy stresses two main objectives. Mckeever institute of economic policy analysis ethiopia. Thus, they suggested that all fiscal policy variables have to be included in the regression. O box 8, wolaita sodo, ethiopia abstract the purpose of the paper is to examine the impact of fiscal policy variables on economic growth for ethiopia.

The second part will deal with the organization and sources of tax 3. It is used in conjunction with the monetary policy implemented by. National policy principles and objectives ethiopia. Ethiopian economic associationethiopian economic policy research institute eeaeepri publisher.

That is, previous researches used only oneside instruments of fiscal policy. Fiscal and monetary policy download ebook pdf, epub. In economics and political science, fiscal policy is the use of government revenue collection taxes or tax cuts and expenditure spending to influence a countrys economy. Click download or read online button to get fiscal and. Top 8 objectives of fiscal policy economics discussion. National policy principles and objectives national policy principles and objectives. Addis fortune, bank borrowing, csa, ethiopian television, fiscal policy, food inflation, halfyear report on government performance, headline inflation, meles zenawi, monetary policy. Fiscal policy and economic growth in ethiopia semantic scholar. In 201718 growth slowed due to political uncertainty and appropriately restrictive macroeconomic policies.

Subnational fiscal autonomy in a developmental state. Project muse an economic analysis of fiscal federalism. The structure of the ethiopian economy is profiled in terms of the modernization process of pre1974. The national bank of ethiopia regulated currency, controlled credit and monetary policy, and administered foreigncurrency transactions and the official foreignexchange reserves. The impact of fiscal policy shocks on ethiopian economy. Reserves were thin and foreign exchange shortages persisted. Fiscal policy in ethiopia ethiopian economic association. Northeast african studies, volume 10, number 2, new series, pp. In other words, even if the risky fiscal imbalance can be primarily blamed for the erosion of the budgetary autonomy of regional states, the budgeting. The macroeconomic effects of fiscal policy shock in. Regional integration and international priorities involved. Fiscal federalism derives its nature and characteristics from constitutional. Due to different factors, federations exhibit significant variation in their respective forms, natures and degrees of decentralization. Public finance and taxation in ethiopia pdf in a moment of dismissive hubris, the ethiopian tax system may be.

This paper attempts to sketch the contours of ethiopian fiscal policy as it evolved. Ethiopias current fiscal policy objective is to achieve public debt sustainability and maximise the efficient use of highly concessional. Features, roles and functions of fiscal policy in ethiopia fiscal policy is one of the major macroeconomic policies in which a government uses its spending and taxation powers to monitor and influence a nations economy. The imfs transparency policy allows for the deletion of marketsensitive information and premature disclosure of the authorities policy intentions in published staff reports and other documents. Fiscal policy must be designed to be performed in two waysby expanding investment in public and private enterprises and by diverting resources from socially less. Monetary policy and inflation dynamics in ethiopia. Mekonen tadesse editor, ethiopian economic associationeea, departments of economics of aau. This study examines the impacts of fiscal policy shock on ethiopian economy. This insulates ethiopia somewhat from the slowing of global markets, which has pushed the international.

M an economic analysis of fiscal federalism in ethiopia 3 resources across regions and economic agents. Furthermore, var granger causality test suggests the. The external current account deficit narrowed to 6. In this context, this paper assesses the impact of fiscal policy on the incidence. Fiscalfederalismintheethiopianethnicbasedfederalsystem download fiscalfederalismintheethiopianethnicbasedfederalsystem ebook pdf or read online books in. The current state of ethiopian financial sector and its regulation. The search for a descriptive rule is the case of ethiopia is of great interest. Fiscal imbalances in fdre contd vertical imbalance for example for instance, the revenue generated by the regions accounts for only a maximum of 9. Ethiopia s macroeconomic outturn during the past year 201516 has been adversely affected by a severe drought and the weak global environment. Besides, monetary policy is found to be more important in the dynamics of inflation compared to fiscal policy. Ethiopian economic associationethiopian economic policy research institute eeaeepri. Country financial accountability assessment ethiopia.