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Budget Brief

Ethiopia

© UNICEF Ethiopia/2016/Tesfaye

National Education Sector Budget Brief: 2006-2016

Key Messages

 The education sector received 24.2 per cent of on-budget total national expenditure and 4.4 per cent of
Gross Domestic Product (GDP) in 2015/16, meeting the global benchmark of 20 per cent of the national
budget spent on education as put forth by the Education for All. This is an impressive achievement which
begs the call for maintaining the share of government expenditure being spent on education.
 Per student spending on higher education is approximately 35 times greater than what is spent on general
education in 2014/15, mainly fuelled by the construction and expansion of universities. Improvements are
required in the composition of education spending by reallocating government expenditure within the
education sector towards general education which is more pro-poor and more equitable.
 The Government of Ethiopia has achieved remarkable progress in sustaining nominal increases in
education spending though this is quite modest when accounting for inflation. In 2015/16, the aggregate
expenditure in the education sector was Ethiopian Birr (ETB) 67.9 billion in nominal value but when taking
into account the rise in consumer prices since 2006/07 this amount only equates to ETB 16.8 billion. In
light of the pressure of providing quality education to a growing child population (approximately 47 million
below 18 years of age in 2017) greater effort is required to ensure sustained increases in inflation adjusted
education expenditure.

This budget brief is one of four and analyses budget and expenditure that are recorded on-budget for the Federal Ministry of Education
(MoE) and its affiliated sub-national level Bureaus of Education (BoE) and district level Woreda Education Offices. Audited financial accounts
are presented for the years up to 2013/2014 while preliminary financial accounts have been made available for the 2014/2015 and 2015/2016
fiscal years. The main objective is to synthesize complex budget information so that it is easily understood by stakeholders, and to put forth
key messages to inform policy and financial decision-making processes.
Key Messages Continued

 National education expenditure is predominantly recurrent expenditure amounting to 62.6 per cent of
total education spending on average over the past decade, out of which teachers’ salaries account
for the greatest proportion leaving insufficient financing for investments in the other inputs essential
for children and young people’s academic success, such as the maintenance of infrastructure, the
provision of curriculum materials, teacher development, etc. Improvement in budget allocation needs
to be made within the education sector so as to not forsake these essential elements that if
unattended to will compromise gains in education outcomes.
 Early Childhood Education (ECE) is currently heavily under resourced. Investments in holistic ECE
should increase as ECE is a cost-effective way to enhance long term educational outcomes and to
reduce educational inequities.
 ECE is currently missing as a separate line item in public finance data making it difficult to measure
and track how much is being spent on ECE. A separate budget line for ECE should be introduced in
the state budget.
 Significant financing of the education sector is directed through off-budget channels making it
challenging to track and record how much is being spent on education. There is a need to shift off-
budget financing of the education sector to on-budget records in order to better track, plan, execute,
monitor and direct funding towards sustainable financing of the education sector.
 Further evidence generation is required to better understand and document education financing, for
example by conducting Public Expenditure Tracking Surveys to assess leakages and wastages in
the education sector, which can contribute to additional efficiency gains.

©©
UNICEF Ethiopia/2013/Ose
UNICEF Ethiopia/2013/Ose

2
1. Overview of the Education Sector
Education has remained at the forefront of dependable administrative data which is a vital
Ethiopia’s development agenda. The government requirement for measuring progress in the
has continuously prioritized investments in this sector, education sector. A recent study that looked into this
which has contributed to a rapid expansion of access concern reports that schools have a tendency to
to all education levels along with a sharp increase in inflate and over-report on their enrolment rates due to
the number of teachers and schools. As a result, the enrolment rates being tied to the amount of school
education system has expanded from 10 million grants that schools receive for quality improvement
students in 2005/06 to 25 million students in 2014/15 purposes.3 This calls for introducing check and
(Figure 1). balance measures (for example third party data
verification) to ensure that data quality and
dependability are maintained, which are issues
planned for greater attention over the remaining
Figure 1: Enrolment trends by levels of education (in period of the national Education Sector Development
million) Plan V (2015/16-2019/20).
30
Challenges in student retention, such as a high
24.87
25 23.77 Grade 1 dropout rate of 17.9 per cent in 2015/16
21.47 22.11 and low school completion rates (Table 1) that
19.67 result in the inability to achieve higher levels of
20
education, reinforce the need for greater
investment in holistic Early Childhood Education
15
(ECE). ECE addresses inequities and improves
attendance in pre-primary and primary school,
10 while contributing to efforts in improving the
quality of education and learning outcomes. Such
5 results have been demonstrated by the Government
of Ethiopia’s (GoE) O-class initiative and UNICEF’s
0 Accelerated School Readiness (ASR) and Child-to-
2010/11 2011/12 2012/13 2013/14 2014/15 Child School Readiness Programmes which target
Pre-primary Primary Secondary children that do not have access to O-class.4 , 5
TVET Undergraduate Graduate
Total Affirmative action measures have improved gender
Source: Data from Ethiopia Federal Ministry of Education (FMoE), parity, though female enrolment in higher education is
Education Statistics Abstracts for 2014/15 & 2015/16. still very low. For instance, the percentage of female
students in undergraduate and postgraduate
programmes were 35 per cent and 23.8 per cent
respectively in 2014/15.6 Progress is also underway in
Ethiopia achieved universal primary education ahead making education accessible to the pastoralist
of the 2015 MDG mark, however, national community through educational programmes that
achievements at the primary school level are still not meet the unique needs of the mobile pastoralist
matched at the pre-primary and secondary levels. lifestyle, such as the Alternative Basic Education
Most preschools and secondary schools are located (ABE) programme, mobile schools, Koranic schools,
in urban areas, and access is limited to children whose distance and open learning, functional and integrated
parents can afford to pay school fees. Inequities are adult education, and pastoralist field schools, as
also reflected in school attendance ratios in that both outlined in the recently updated National Pastoralist
primary and secondary education benefit the most Education Strategy. The Education Sector
students in the richest quintiles.1 Development Plan V also addresses the links with
social protection services such as school feeding
Apart from pre-primary enrolment, enrolment programmes in food insecure areas, scholarship
rates significantly decline the higher the grade support, as well as the opening and expansion of
level (Table 1). Net Enrolment Ratios (NER) greater boarding and para-boarding schools in pastoral and
than 100 per cent2 bring to light the issues in data semi-pastoral areas.
quality and challenges faced in obtaining

1 4
Central Statistics Agency; 2016 Demographic Health Survey, p.29. American Institutes for Research. 2015. Evaluation of the Accelerated
2 School Readiness Intervention in Ethiopia: Cohort 1 School Readiness
The MoE enrollment rate calculation makes use of pupil headcounts
Assessment.
(measured by the MoE managed Education Management Information System 5
University of Toronto, Ontario Institute for Studies in Education, 2014, An
(EMIS)) which are divided by the Central Statistics Agency’s school age
Evaluation of the Child-to-Child School Readiness Programme in Ethiopia.
population estimates.
Report prepared for the Government of Ethiopia and UNICEF.
3
“Findings and preliminary outline, Education Management Information 6
Ethiopia Federal Ministry of Education, Education Statistics Abstract,
System (EMIS) Action Plan”, 10 October 2016, draft report prepared by
2014/15. pp. 151 and 157.
FHI360 under the direction of British Council Ethiopia with the support of
UKAID for the Federal Democratic Republic of Ethiopia, Ministry of Education.
3
Table 1: Selected education outcome indicators financial investments to effectively address concerns
Key indicators 2009/10 2015/16 in the quality of education.
(NER) (pre-primary), % 4.8 48.1
NER (Grade (G) 1-4), % 86.6 118.4
Male 88.2 123.8
Female 84.9 112.9
NER (G5-8), % 46.4 56.7
Box 1: Policy and strategy documents for education
Male 46.0 57.3
Female 46.9 56.0
 Growth and Transformation Plan, GTP-II, (2015/16-
NER (G9-10), % 16.4 23.7
2019/20) which builds on former national development
Male 16.8 23.0
plans such as GTP-I (2010/11-2014/15).
Female 16.1 24.4
 National Education and Training Policy, 1994.
NER (G11-12), % ----- 7.4
 Education Sector Development Plan V (2015/16-
Male ----- 7.5
2019/20), which builds on four former Education
Female ----- 7.3
Sector Development Plans (ESDPs) implemented
Dropout rate (G1), % 28.1 17.9
between 1997/98 and 2014/15.
Completion rate (G5), % 75.6 71.2
 National Pastoralist Education Strategy, 2008 and
Male 77.5 72.8
updated and validated in 2016.
Female 73.7 69.4
 National Quality Minimum Service Standards for
Completion rate (G8), % 47.8 54.3
Primary Schools.
Male 51.0 55.3
Female 44.5 55.3  National Girls’ Education and Gender Equality
Strategy, 2013.
Student-Teacher Ratio (G1-8) 51 46
 Code of Conduct on School-Related Gender Based
Student-Section Ratio (G1-8) 57 55
Violence (SRGBV), 2013.
Gender Parity Index (GPI), %
 Education Sector Knowledge Management Strategy,
Primary (G1-8) 0.9 0.91
2015.
Lower Secondary (G9-10 0.8 0.94
Upper Secondary (G11-12) 0.56 0.87  Communications for Development (C4D) in Education
Source: Ethiopia Federal Ministry of Education; Education Statistics Strategy, 2015.
Abstracts for 2014/15 & 2015/16.  National Social Protection Strategy, 2016 (2016-
2019).
 National Social Protection Action Plan, 2017, (2017-
2021), Regional Social Protection Action Plans for
Despite noted achievements in access to Amhara, Oromia, SNNP and Tigray regions.
education, challenges in the quality of education
remain. A 2010 study on early grade reading
assessment provides findings that there were a
significant percentage of illiterate children among
children who had attended school for two or three
years, and reading comprehension scores were also 2. National Education Spending
very low with more than 50 per cent of children in most
of the regions under study unable to answer a simple This budget brief is focused on analysing the
comprehension question.7 Other results from a recent education budget and expenditures that are recorded
national learning and assessment study show that the on-budget and reported by MoFEC. The education
national average score for Grade 4 students in four sector accounts for the largest proportion of the
subjects (namely English, reading, mathematics and GoE’s spending at 24.2 per cent of total
environmental science) was 44.7 per cent, while the expenditure in 2015/16 reflecting the strong
national average score for Grade 8 students in five commitment of the GoE to educational
subjects (namely English, mathematics, physics, development (Figure 2). However, it should be noted
chemistry and biology) was 41.1 per cent, both levels that due to linkages across sectors, spending in
scoring less than the minimum expected score of 50 sectors such as health and road construction
per cent.8 (especially rural roads) has spillover effects that
positively affect education outcomes. For instance,
The MoE is addressing quality issues in the education healthier children are more likely to have higher school
sector through its Second Quality Improvement attendance rates, while rural roads facilitate access to
Programme (GEQIP II), though a long road ahead education services.
awaits. This will require huge effort and substantial

7 8
USAID. 2010. Ethiopia Early Grade Reading Assessment. Data Analysis National Educational Assessment and Examinations Agency. November
Report: Language and Early Learning. 2016. Ethiopian Fifth National Learning Assessment of Grades Four and
Eight Students. First Draft.

4
Figure 2: Weight of the education sector among other In 2015/16, the aggregate expenditure in the
priority sectors (per cent of total expenditure) education sector was Ethiopian Birr (ETB) 67.9
billion in nominal value and ETB 16.8 billion in real
terms, at 2006/07 prices (Figure 4)9. Compared to
100% 8.4 7.9 8.0 7.5
the spending levels in 2007/08, expenditure in
90% 8.6 7.7 8.2 8.7 nominal and real terms grew at an average rate of
80% 8.8 11.6 10.1 12.3 27 per cent and 8.3 per cent respectively (Figure 5).
70% 17.7
21.5 20.1 16.1
60%
50% 21.6 Figure 4: Trends in education expenditure
21.6 24.2
40% 22.7
80
30% 67.9
70
20% 34.9 32.0 31.2
28.7 60
10% 54.7

0% 50
41.6
2009/10 2011/12 2013/14 2015/16
40
30.4
Water Energy & Electricity Health and Nutrition 30
Agriculture & Food Security Road Construction 25.1 22.1 23.7 24.2
20.8 21.6 22.7 22.2 21.6
Education Others 20
Source: Data from MoFEC.
10 8.2 4.1 3.9 4.5 4.3 4.1 4.2 3.9 4.2 4.4
Cross country comparisons of educational spending 0
are presented in Figure 3 using internationally
available data but it should be noted that the
international data differs from national data due to
probable reasons such as varying definitions, Education expenditure (% of GDP)
methodologies, reporting periods, etc. Out of the Education expenditure (% of total expenditure)
Education expenditure (nominal value in billion ETB)
internationally agreed targets set out by the Education expenditure (real value in billion ETB)
Education for All (EFA) coalition, Ethiopia meets Source: Data from MoFEC.
the target on education expenditure accounting
for 20 per cent of total government expenditure,
whereas it is yet to meet the international target for 6
per cent of GDP being allocated to education (Figure
3).
Figure 5: Annual change in education expenditure
Figure 3: Education expenditure (% of GDP) across 40.0 36.9
countries 35.0 32.8
9 31.5
7.9 30.0
8
23.2
25.0
7 29.2 22.1
6.5 6.6
6.1 6.1 6.2 20.0
15.2
6
5.5 5.6 5.4 5.3 15.0
5
4.5 10.0
4.2 6.6
4
5.0 2.1
3 2.5 0.0 -1.7
2.2 2.2
2 -5.0
1 -10.0
0
2012 2013 2014 Education expenditure (nominal change, %)
Ghana Education expenditure (real change, %)
Mozambique
Kenya Source: Data from MoFEC.
Ethiopia
Uganda
Global education spending benchmark (6% of GDP)
Source: Data from the World Bank; World Development Indicators,
July 2017 edition.

9
“In real terms” refers to the adjustment of monetary values by taking into
account “the rise of consumer prices (i.e. inflation)” over time.
5
3. Composition of National Education higher than that of general education in 2014/15
Spending (Figure 7). Improvements are thus required in the
composition of education spending by reallocating
The past two decades have witnessed a major government expenditure within the education sector
expansion of the public schooling system in Ethiopia, towards general education which is more pro-poor and
with primary enrolment (Grades 1-8) rising from 5.7 more equitable.
to 20 million, and secondary enrolment (Grades 9-12)
Figure 7: Per capita education expenditure in 2014/15 by
increasing from 0.5 to 2.4 million from the year level of education in ETB.
1998/99 to 2015/16 respectively. As a result, up to the
late 2000s, the bulk of the spending was directed at 31,668
35,000
financing general education,10 with an imbalance for
technical and vocational education and training 30,000
(TVET) and higher education. A result of this 25,000
imbalance owing to the high recurrent budget (mainly 20,000
due to teacher salaries), is that it leaves insufficient 15,000 9,641
financing available for investments in the other 10,000
inputs essential for children and young people’s 835 1,517
5,000
academic success, such as the maintenance of
infrastructure, the provision of curriculum -
Primary Secondary TVET Higher
materials, teacher development, etc. In 2009/10, education education education
46.8 per cent of the education expenditure was
Source: Data from Ethiopia FMoE, Education Statistics Abstracts
allocated towards general education, which for 2014/15 and General Education Statistical Abstract for 2015/16.
reduced to 37.1 per cent in 2014/15 (Figure 6). On
the contrary, low amounts of funding continue to be In terms of types of expenditure, spending in the
allocated for the TVET sub-sector, from where middle education sector remained predominantly
level competencies to help drive the economy are to recurrent in nature. Over the last decade, nearly 62.6
emerge. Education spending on TVET has decreased per cent was on average allocated to finance recurrent
over the period from 8.5 per cent in 2009/10 to 6.7 per education expenditure (Figure 8). Salaries and non-
cent in 2014/15. salary recurrent spending, including textbooks and
teacher training, account for the bulk of education
Figure 6: Composition of education expenditure in 2009/10 recurrent expenditure. The remaining 37.4 per cent
and 2014/15 by level of education
was on average absorbed by capital education
60 expenditure. In the presence of competing investment
46.8 48.1 requirements in other sectors such as transport and
50
energy infrastructure, the GoE has remained
40 37.1 committed to maintaining its large capital education
31.7 expenditure that has more recently been driven by the
30 construction and expansion of universities.

20 Figure 8: Recurrent and capital education expenditure


13.1 80
8.1 8.4 68.5 65.8
10 6.7 70
63.5 60.7
60 57.5
0
50
General Higher Other education TVET spending 42.5 39.3
education education spedning 40 36.5 34.2
3…
spending spending
30
2009/10 2014/15
20
Source: Data from Ethiopia FMoE, Education Statistics Abstracts
for 2014/15 and General Education Statistical Abstract for 2015/16. 10
0
Higher education has been the largest sub-sector
in terms of spending since 2010 when the
construction of the third generation of universities
got under way. It accounted for 48.1 per cent of Recurrent education expenditure (% of education
education spending in 2014/15 (Figure 6). expenditure)
Moreover, the per student education spending in Source: Data from MoFEC.
higher education is approximately 3511 times

10
According to the Federal Ministry of Education’s General Education and secondary education divided by the sum of students enrolled in primary
Statistics Abstract for 2015/16, page 2, “general education” includes and secondary education using the Federal Ministry of Education, General
preprimary, primary, secondary, Integrated Functional Adult Literacy, Special Education Statistical Abstract for 2015/16, p.18.
Needs Education and Teachers in General Education.
11
Per capita spending on general education, which amounts to ETB 904, is
calculated (due to data limitations) as the sum of expenditures for primary
6
Following fiscal decentralization in Ethiopia, Figure 10: Federal recurrent and capital education
regional and local governments undertake expenditure (% of federal education expenditure)
planning and resource mobilization for the 100%
education sector. As a result, over the last decade, 90% 25.5 31.1 32.3 35.1
more than half of the national education spending 37.4 37.3 33
80% 40.2 45.9 40.3
was administered by regional and local 70%
governments (Figure 9). This demonstrates the
60%
government’s effort in promoting universal access to
primary education at the grassroots level, and the 50%
implementation of targeted interventions to close the 40% 74.5
67 68.9 67.7 64.9
existing regional, gender and urban-rural enrolment 30% 62.6 62.7 59.8 54.1 59.7
differentials to achieve universal primary education 20%
across the board. Improvements in access to primary 10%
schools with innovations such as mobile schools are
0%
helping to reach disadvantaged groups and children
living in remote rural areas.

Federal recurrent education expenditure


Federal capital education expenditure

Source: Data from MoFEC.


Figure 9: Federal versus regional education expenditure (%
of total education expenditure)
60
59.2
At the regional level however the composition is
different. The bulk of regional governments’
55
53.0 education expenditure is allocated to finance
recurrent education expenditure (Figure 11).
50 Salaries, textbooks and teachers’ training account for
a substantial part of regional recurrent education
47.0 spending, while capital spending at the regional level
45
has stagnated, reflecting the policy to mobilize
40.8 communities’ contribution for primary school
40 construction and expansion.

Federal education expenditure


Figure 11: Regional recurrent and capital education
expenditure (% of regional education
Regional education expenditure spending)
Source: Data from MoFEC. 100%
7.9 9.9 8.2 12.5 13.7
90% 16.4 19.5 16.3 15.8 16.2

80%
70%
60%
At the federal level, nearly 64 per cent of the
50%
federal education expenditure is directed to 92.1 90.1 91.8 87.5
86.3 83.6
finance capital education expenditure (Figure 10). 40% 80.5 83.7 84.2 83.8
And approximately 19 per cent of the federal 30%
education capital expenditure is financed from 20%
external sources and allocated for the construction 10%
and expansion of higher education. This is due to the
0%
fact that the construction and expansion of universities
is the responsibility of the federal Government while
regional governments are responsible for the
management of lower tier education sub-sectors. Regional capital education expenditure
Regional recurrent education expenditure

Source: Data from MoFEC.

7
4. Budget Execution Rates
In Ethiopia, the education sector budget execution financing, domestic resources cover the majority
rate (measured as actual expenditure as a per cent of of the federal education capital expenditure, while
adjusted budget) has been rising in recent years, donor contributions (on-budget) to the federal
though gaps remain (Table 2). Budget execution Government capital education expenditure have been
rates greater than 100 per cent may signify rising from ETB 0.5 billion in 2006/07 to ETB 3.4 billion
challenges in the unpredictability of external aid. in 2012/13 and amounting to ETB 1.9 billion in
The gaps in budget execution can be partially 2014/15 (Figure 12).
explained either by absorptive capacity or allocative
efficiency issues, or both, which warrants further
investigation. Efficiency gains can be improved by
Figure 12: Sources of federal capital education expenditure
enhancing sector coordination and planning, (in billion Birr)
addressing the quality and capacity of the
16
education sector workforce as well as the quality
of education service delivery to reduce wastage 14
and optimally utilize current expenditures on the 1.9
education sector. Further evidence generation to 12
better understand and document education 1.1
financing, for example by conducting Public 10 3.4
Expenditure Tracking Surveys to assess leakages 2.4
and wastages in the education sector, can 8 12.3
contribute to additional efficiency gains. 1.6
10.7
6 8.5
8.1
0.8
4 0.47
Table 2: Federal government education expenditure 0.5 0.6
execution rate (per cent) 6.4
2
2.9 4.2
2006/ 2008/ 2010/ 2012/ 201 2014/ 2.1 2
07 09 11 13 3/14 15 0
Total
education 84.5 71.9 117 89.5 88.3 95.4
spending
Recurrent
education 92.5 90.3 94.5 94 96.1 External source
86.5
spending
Domestic source
Capital
education 83.8 63.5 135 87 84.8 94.9 Federal capital education expenditure (real value)
spending Source: Data from MoFEC.
Source: Data from MoFEC (information for sub-national levels of
government has not been made available). Note: Percentages
greater than 100 per cent may signify challenges in the
unpredictability of external aid.

5. Sources of Education Sector


Financing
The national education system is financed through
domestic funds from the state budget, external funds
received from bilateral and multilateral donors, private
sector investments and household contributions. A
portion of external financing to the education
sector is directed through off-budget channels,
the amounts of which are challenging to track.
Hence this budget brief is limited to analysing on-
budget finances, and leaves out significant financial
resources channelled to the education sector through
off-budget donor resources, private sector
investments and households’ contributions.
Information on the sources of on-budget education
sector financing has been made available only for
federal capital expenditures. Regarding on-budget
8
6. Key Policy Issues

 Improve the quality and dependability of budget channels making it challenging to


administrative data and address inflated and track and record how much is being spent on
over-reported educational statistics, for education, which calls for shifting all
instance through third party data verification. education financing to on-budget records.

 Address quality of education challenges


such as the low school performance and  Address the significant inequities in
standard examination pass rates for boys and education outcomes that are primarily
girls at all levels, which will warrant continued driven by wealth disparities, which is
national attention. With the significant loss of highlighted as a critical concern. Also address
investment from repetition, every extra year the lower access to education, retention, and
that it takes for the completion of a cycle completion rates for children with disabilities
means the inefficient use of resources. and children in emerging regions. In addition,
school structures continue to neglect the
particular needs of girls and disabled children,
 Increase investments in holistic Early and many schools are built without adequate
Childhood Education (ECE) which is a
water and sanitation facilities, requiring more
cost-effective way to enhance long term
attention to be paid to institutional linkages to
educational outcomes and to reduce
address, for instance, the provision of water
educational inequities, which alongside and sanitation services for schools, as well as
investments made by other sectors in extend institutional linkages for social
Integrated Early Childhood Development protection.
(IECD) will result in longer term development
and economic outcomes.
 Provide mechanisms to reduce the
number of out-of-school children and
 Introduce a separate budget line for ECE ensure children are provided with their
in the state budget as this is currently rights to an education. The GoE estimates
missing in public finance data making it that there are approximately 2 million out-of-
difficult to measure and track how much is school children in the primary school age
being spent on ECE. group. However, when dropouts are also
factored in, this estimate increases to over 2.6
 Shift off-budget support of education to million, with girls accounting for approximately
on-budget records: Significant financing of 55 per cent of out-of-school children.12
the education sector is directed through off-

12
Ministry of Education and UNICEF - Ethiopia. 2012. Study on Situation of
Out of School Children (OOSC) in Ethiopia.

9
Annex 1: Ethiopia National Education Sector On-budget Records 2006-2016
Gregorian Calendar Ethiopian Fiscal Year 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Julian Calendar Ethiopian Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Population (in million) 72.0 75.0 77.0 79.0 80.7 82.7 84.8 87.0 89.1 91.2
GDP at current market price (in million ETB) 170280.6 245836.0 332060.3 379134.5 515079.0 747326.0 866921.0 1060825.0 1297961.0 1528044.0
General Inflation Rate (CPI growth rate) 15.8 25.3 36.4 2.8 18.1 34.1 13.5 8.1 7.7 9.7
Exchange Rate (period weighted average) 9.0 9.6 11.8 13.7 16.5 18.0 19.3 19.9 20.1 21.1
Expenditure (in million ETB)
Total National Expenditure 32581.1 45937.5 61543.6 78990.6 97857.2 134065.0 162705.7 192673.6 231015.5 280892.9
Total National Recurrent Expenditure 16728.8 22490.1 26457.9 31712.0 42245.1 55664.2 66444.1 78630.6 112685.2 136708.8
Total National Capital Expenditure 15852.3 23447.4 35085.6 47278.6 55612.1 78400.8 96261.6 114043.0 118330.3 144184.09
Total National Education Expenditure 8173.5 10133.2 12794.3 17033.1 22157.5 30377.3 36054.5 41548.5 54667.6 67871.8
National Recurrent Education Expenditure 5187.6 6950.4 8766.3 10838.6 12812.1 17460.1 20730.7 26130.9 35974.1 41209.4
National Capital Education Expenditure 2985.9 3182.8 4027.9 6194.5 9345.4 12917.3 15323.8 15417.6 18693.4 26662.4
Total Federal Government Education Expenditure 3512.3 4137.0 5467.2 7476.1 11533.4 15469.3 18227.9 19880.4 26251.6 35952.2
Federal Government Recurrent Education spending 894.1 1545.9 2037.6 2475.2 3587.2 4990.6 6389.5 7988.1 12058.2 14475.3
Federal Government Capital Education spending 2618.2 2591.1 3429.7 5000.9 7946.2 10478.7 11838.4 11892.3 14193.3 21476.9
Total Regional Government Education Spending 4661.2 5996.2 7327.0 9557.1 10624.1 14908.0 17826.6 21668.1 28416.0 31919.6
Regional Government Recurrent Education spending 4293.5 5404.5 6728.8 8363.4 9224.9 12469.5 14341.3 18142.8 23915.9 26734.1
Regional Government Capital Education spending 367.7 591.8 598.2 1193.7 1399.2 2438.5 3485.4 3525.3 4500.1 5185.5
Sources of Finance for Federal Government Capital Education Expenditure (in million ETB)
Domestic Source 2100.8 1983.5 2932.2 4212.5 6391.0 8084.6 8507.6 10731.7 12288.9
External Loan 383.2 499.6 428.3 447.9 669.6 410.8 1069.7 338.2 216.6
External Assistance 134.1 107.9 69.2 340.2 885.6 1983.3 2261.0 822.4 1687.8
Federal Government Education Original Budget, Adjusted Budget, and Actual Expenditure (in million ETB)
Federal Government Recurrent Education:
Original Budget 965.4 1424.8 1926.1 2298.1 3619.2 4980.4 6473.3 8614.8 10647.8
Adjusted Budget 1034.3 1707.5 2203.8 2429.8 3970.4 5292.0 6761.6 8499.9 12548.1
Actual Expenditure 894.1 1545.9 2037.6 2475.1 3587.2 4990.6 6389.5 7988.1 12058.2
Federal Government Capital Education:
Original Budget 3239.4 3237.0 5060.1 5284.2 4962.9 10973.3 12106.4 13867.8 13908.7
Adjusted Budget 3124.7 3545.4 5405.0 6414.8 5890.0 13773.6 13611.5 14020.7 14963.1
Actual Expenditure 2618.6 2591.1 3429.7 5000.9 7946.2 10478.7 11838.4 11892.3 14193.3
Total Federal Government Education:
Original Budget 4204.8 4661.8 6986.2 7582.3 8582.0 15953.7 18579.8 22482.6 24556.5
Adjusted Budget 4159.0 5252.8 7608.8 8844.6 9860.5 19065.6 20373.1 22520.6 27511.2
Actual Expenditure 3512.7 4137.0 5467.3 7475.9 11533.4 15469.3 18227.9 19880.4 26251.6
Source: MoFEC.
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© UNICEF Ethiopia/2014/Ose

This budget brief was written by Zeleka Paulos (Social Policy Specialist, UNICEF Ethiopia) and Ademe Zeyede
(Consultant, UNICEF Ethiopia) under the guidance of Remy Pigois (Chief Social Policy and Evidence for Social
Inclusion, UNICEF Ethiopia). The content has benefited from information and documentation provided by
Shumye Molla (Education Specialist, UNICEF Ethiopia). The provision of MoFEC budget and expenditure data
and explanations presented for MoFEC data related questions by Ato Fantahun Belew (Technical Expert,
MoFEC) is highly appreciated. This budget brief has been reviewed by Emmanuelle Abrioux (Chief of Education,
UNICEF Ethiopia), Jean Dupraz (Social Policy Regional Adviser, Eastern and Southern Africa Regional Office
(ESARO)) and Matthew Cummins (Social Policy Specialist, ESARO).

© United Nations Children’s Fund (UNICEF), Ethiopia


2017

Permission is required to reproduce any part of this publication. Permission will be freely granted to educational or
non-profit organizations.

To request permission and for any other information on the publication, please contact:

UNICEF Ethiopia
P.O. Box 1169, Addis Ababa, Ethiopia
Telephone: +251 11 518 4000
E-mail: ethcommunication@unicef.org

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