The objective of this study is explorein depth public finance issues and their impact ondecentralized service delivery at the regional and woredalevel in Amhara region. The study is carried out as part ofthe federal and some regional case studies designed toexamine effectiveness of public finances of sub-nationalgovernments. This study was expected to (i) review theinstitutional arrangement for managing public finances atthe regional level including policies, budgetaryinstitutions, systems and processes; (ii) assess the level,trend, and composition of public spending (both functionaland economic classification) in per capita terms over thepast five years and identify key achievements andlimitations; (iii) assess the level, trend, and, compositionof revenue at the regional level and examine the financingframework, including ways to increase local revenuegeneration capacity; (iv) assess the role of external aid insupporting decentralized service delivery and thesustainability of the program in absence of external aid;(v) review the planning and budgeting process as well as thequality of PFM system; and (vi) data permitting, establishthe link between the level of spending and the outputs andoutcomes for selected sectors. The study used standardpublic financial process review methodologies used forundertaking PEFA assessments. The report reviewed thevarious studies, plans and performance reports of thevarious sectors in the regions between EFY 1997 and 2001. Inaddition, key informant interviews were carried out atbureaus levels and woreda offices of education, health,water, agriculture and rural development, finance andeconomic development, revenue, General Auditor, rural roadand woreda administrations.
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