Fiscal policy, public investment and economic growth in ethiopia. Besides, monetary policy is found to be more important in the dynamics of inflation compared to fiscal policy. It begins the year on august 29 or 30 in the julian calendar. Fiscal policy in ethiopia ethiopian economic association. The current state of ethiopian financial sector and its regulation. In 201718 growth slowed due to political uncertainty and appropriately restrictive macroeconomic policies. Due to different factors, federations exhibit significant variation in their respective forms, natures and degrees of decentralization. This study examines the impacts of fiscal policy shock on ethiopian economy. Northeast african studies, volume 10, number 2, new series, pp. Fiscal imbalances in fdre contd vertical imbalance for example for instance, the revenue generated by the regions accounts for only a maximum of 9. Addis fortune, bank borrowing, csa, ethiopian television, fiscal policy, food inflation, halfyear report on government performance, headline inflation, meles zenawi, monetary policy. Ethiopian calendar is the official calendar of the government of ethiopia based on old alexandrian or coptic calendar.
This insulates ethiopia somewhat from the slowing of global markets, which has pushed the international. The theory of fiscal federalism fiscal federalism refers to a process of distribution and redistribution of fiscal decisionmaking power across multilevel governments. Country financial accountability assessment ethiopia. Project muse an economic analysis of fiscal federalism. On the one hand the national bank of ethiopia does try to follow announced target before 200607 the national. The search for a descriptive rule is the case of ethiopia is of great interest. Thus, they suggested that all fiscal policy variables have to be included in the regression. Fiscal policy and economic growth in ethiopia semantic scholar. Copies of this report are available to the public from international monetary fund. 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.
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. 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. Public finance and taxation in ethiopia pdf in a moment of dismissive hubris, the ethiopian tax system may be. Monetary fund imf to adjust global growth projections. 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. Pdf the macroeconomic effects of fiscal policy shock. Among the most important is the recognition that fiscal and monetary policies are. The national bank of ethiopia regulated currency, controlled credit and monetary policy, and administered foreigncurrency transactions and the official foreignexchange reserves. Regardless of these differences, however, the necessity of a. Ethiopian economic associationethiopian economic policy research institute eeaeepri publisher. It is used in conjunction with the monetary policy implemented by.
What is new after a decade and half strategy of gradualism in reform, 20012017 working paper pdf available. The role of fiscal policy in the longrun growth process has been central in macroeconomics especially since the appearance of endogenous growth models. 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. Republic of ethiopia on september 26, 2016, the executive board of the international monetary fund imf concluded the article iv consultation1 with ethiopia. Top 8 objectives of fiscal policy economics discussion. Prime minister pm abiy ahmed took office in april 2018, catalyzing. Furthermore, var granger causality test suggests the.
Any organ of government shall, in the implementation of the constitution, other. 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. Ethiopia s macroeconomic outturn during the past year 201516 has been adversely affected by a severe drought and the weak global environment. This paper attempts to sketch the contours of ethiopian fiscal policy as it evolved. Reserves were thin and foreign exchange shortages persisted. Mekonen tadesse editor, ethiopian economic associationeea, departments of economics of aau. Ethiopias current fiscal policy objective is to achieve public debt sustainability and maximise the efficient use of highly concessional. Pdf the current state of ethiopian financial sector and. Click download or read online button to get fiscal and.
Fiscalfederalismintheethiopianethnicbasedfederalsystem download fiscalfederalismintheethiopianethnicbasedfederalsystem ebook pdf or read online books in. In recent years, the fiscal policy measures of the government has mainly. Ethiopian economic associationethiopian economic policy research institute eeaeepri. Monetary policy and inflation dynamics in ethiopia. Government spending for economic growth in ethiopia. 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.
M an economic analysis of fiscal federalism in ethiopia 3 resources across regions and economic agents. Fiscal federalism derives its nature and characteristics from constitutional. Pdf the macroeconomic effects of fiscal policy shock in ethiopia. The grand ethiopian renaissance dam will not only benefit ethiopia but the downstream countries of.
Fiscal and monetary policy download ebook pdf, epub. In this context, this paper assesses the impact of fiscal policy on the incidence. Fiscal policy and economic growth in ethiopia getachew petros osebo lecturer, department of the economics, wolaita sodo university p. The impact of fiscal policy shocks on ethiopian economy. Regional integration and international priorities involved. Economic policy analysis this site presents an analysis of the ethiopian governments economic policies compared to a. An economic analysis of fiscal federalism in ethiopia.
The ethiopian economy is still largely on subsistence level, and in spite of some progress made, ethiopia has. Pdf this paper investigated the macroeconomic effects of fiscal policy shocks in ethiopia using a bayesian vector auto regression model. 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 second part will deal with the organization and sources of tax 3. National policy principles and objectives ethiopia. That is, previous researches used only oneside instruments of fiscal policy.