Budgetary Consultations and Implementation Challenges 396 The Federal Government of Ethiopia Financial Administration Proclamation No. 57/1996 clearly outlines the budgetary process and prescribes clear authority and relationships of all stakeholders in preparing the national budget. Accordingly, the Ministry of Finance and Economic Development (MOFED) issues the directives and regulation required for proper implementation. The financial calendar outlines responsibility, procedures and time frames for each phase of the budget cycle. Communities (kebeles) are required to be involved in the planning process so that the ensuing budget (regional and central) is consistent with national development priorities. Overall, and despite the different implementation challenges, fiscal decentralisation seems to be working well for Ethiopia’s development aspirations. It is important, moreover, to continuously emphasise the need for more citizen participation in national and regional budgeting, as well as in decentralised resource management. Furthermore, necessary steps are required of government to consolidate linkages between the planning and budgeting processes - although the MEFF addresses this to some extent - expenditure monitoring and reporting processes, and the fiscal decentralisation process. III. Recommendations 397 The APR Panel recommends that Ethiopia: • Institutionalise planning and budgeting linkages between central government, regional states and woredas, through a well-defined, long-term vision for the country, as well as a gradual movement from the medium- to long-term planning framework; (Government, MOFED, RBOFED) • Translate the MDGs Plan into a fully integrated and costed long-term national development plan from which short- and medium-term national and regional development plans and associated costs will be derived; (Government, MOFED, RBOFED) • Establish a national planning agency; (Government, MOFED) • Further strengthen expenditure reporting and monitoring at all levels of government to enhance accountability; (MOFED, RBOFED) and, • Enhance the capacity of Parliament to undertake thorough budgetary examination so as to effectively perform its oversight function (Ministry of Finance; Parliament). - 164 -