BUDGETING AND PERFORMANCE EVALUATION (THE CASE OF THE DEVELOPMENT BANK OF ETHIOPIA)

Abstract

This study evaluates budgeting and budget Performance. (The case of the Development Bank of Ethiopia), and investigates key problems in budget operation regarding the budgeting process techniques used, and the experience and capability of staff resources. The study adopts mixed method approach in order to achieve the research objectives and to answer research questions. Specifically, the techniques used in the study include survey with Bank staff, in-depth interviews with Strategic planning and Development effectiveness process officials and documentary analysis. With these research methods, the results of the study reveal DBE has well defined approach to budget planning, budget review, budget implementations and performance evaluation. All processes and branches are involved in the entire budgeting process; with participation of their employees (bottom- up and top-down) approach was used. The strategic plan and budget of DBE has supported with Balanced Scorecard (BSC) framework. A close look at the past five year‘s performance (2010/11–2014/15) indicates that the Bank has registered encouraging achievements in its overall credit operation. Moreover, the strategic period performance has registered significant growth in both volume and value of business operations of the Bank. In the end, the study forwards the possible measures to be taken by the Development Bank of Ethiopian to mitigate problems in budgeting and performance evaluation.