Ministry of Finance is one of the key macro institutions with mandates focusing on fiscal policy, public finance and external economic. The Ministry of Finance, among others is given the following powers and duties
As per Article 16 of the Proclamation No.1097/2018 Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation, the Ministry of Finance is given the powers and duties (among others) to:
- Formulate economic cooperation and fiscal policies that particularly serve as a basis for taxes, and duties; follow up the proper implementation of same; initiate reform recommendations.
- Mobilize, negotiate and sign foreign development assistance and loans, and follow up the implementation of same.
- Establish a favorable legislative framework to promote and facilitate the implementation of PPP financed infrastructure projects by enhancing transparency, fairness and long-term sustainability.
- Prepare the Federal Government fiscal budget, make disbursements per the approved budget, and evaluate the utilization of the budget;
The ministries mandate was further extended following the reform efforts
Lead and coordinate economic cooperation with Bilateral, multilateral and regional organizations set up to create economic cooperation; follow up the impact of such links on the performance of the country's economy;
Be the depository of and safeguard the Federal Government's shares, negotiable and non-negotiable instruments and other similar financial assets;
- Establish procurement and property management system of the Federal Government and supervise the implementation of same;
- Establish budgeting, accounting, disbursement and internal audit systems for the Federal Government, and follow up the implementation; that are harmonized and aligned with international standards at the levels of both federal and regional governments; Prepare documents needed to privatize public enterprises; facilitates privatization processes in collaboration with relevant government bodies.
There are four primary policy and financial mandates of the MoF
Develop and implement fiscal policies.
- Develop tax policies to improve domestic resource mobilization and support economic growth.
- Ensure prudent public finance management for macro-economic stability and sustainable development financing.
Public finance management policies
- Asses the medium term national budgetary needs and devise mechanisms to meet set budgetary needs
- Asses the annual budgetary needs and allocate resources to national priorities - sectors, programs, projects
- Develop systems and tools to improve PFM and safeguard public financial resources.
- Ensure the prudent utilization of allocated budget to meet set goals through monitoring and audits.
Mobilize external resources.
- Pursue international partnerships with countries and organizations to mobilize additional financial and non-financial resources to support national development plan
- Ensure sustainable debt management and effective utilization of externally mobilized resources
Public Private Partnership
- Establish a favorable legislative framework to promote and facilitate the implementation of PPP
- Promotes PPP conceptualize, identify and categorize projects, make recommendations, establish policy and guidelines, coordinate activities and ensure compliance.