Ethiopia: Empty Desks, Empty Bellies: Budget Woes Cripple Education From Primary to Higher Level

Addis Abeba — The educational landscape of Wolaita Sodo, a prominent city within the newly established South Ethiopia Regional State, has undergone a significant transformation.

Once vibrant hubs of intellectual discourse, these schools found themselves enveloped in an unsettling silence during the just-concluded Ethiopian fiscal year. The customary pre-lesson exchanges among teachers and the efficient hum of daily operations have yielded palpable tension.

According to a seasoned high school principal in the city, who spoke to Addis Standard on condition of anonymity, this stifling atmosphere was a direct result of a delay in civil servant salaries.

“The previously lively atmosphere has been supplanted by a pervasive anxiety, a burden that weighs heavily not only upon the educators themselves but also upon the very essence of these public institutions,” he emphasized.

The principal’s stark assessment emphasizes that this financial hardship extends far beyond mere inconvenience. It casts a debilitating shadow on the morale of these essential wage earners.

The principal elaborates on how these persistent anxieties erode their well-being, hindering their ability to devote themselves fully to the noble pursuit of crafting engaging lesson plans and pioneering innovative teaching methods.

“This financial crisis has effectively extinguished the flame of their professional zeal, replacing it with a desperate struggle for financial security,” he stated.

The principal underscores the critical nature of this situation, stating that “when the basic necessities of life remain unmet, the unwavering dedication required to nurture young minds becomes an increasingly difficult burden to bear. The very foundation of a nurturing learning environment is demonstrably weakened by this persistent financial hardship.”

He highlighted the detrimental impact on educational quality. “An instructor grappling with financial anxieties is simply unable to provide the same level of support and inspiration to their students.”

Unveiling the root cause of this crisis is Emanuel Mogiso, Chairman of the Wolaita National Movement, an opposition political party, pointing a damning finger at a crippling budgetary stranglehold that has ruthlessly gripped most districts within the Wolaita Sodo Zone.

According to Emanuel, schools, the supposed bastions of knowledge, are now impoverished of even the most fundamental resources, with a dearth of sufficient textbooks hindering the educational process. Capital projects, once envisioned as catalysts for progress, have been brought to a grinding halt; their potential for development has been cruelly extinguished.

“The pernicious effects of this budgetary crisis haven’t spared even federally funded initiatives, which have been significantly hobbled; their ability to deliver critical services is demonstrably impaired. This systemic financial malaise paints a bleak picture, one where the very foundation of a well-functioning society is at risk of crumbling,” he told Addis Standard.

Schools are now impoverished of even the most fundamental resources, with a dearth of sufficient textbooks hindering the educational process.” Emanuel Mogiso, Chairman of the Wolaita National Movement

According to his grim assessment, the past five years have witnessed that the budgetary stranglehold has had a crippling impact on vital infrastructure initiatives, including the Weybebo irrigation project, a new stadium, a modern airport, and the Kelewiwadu Road.

“Salaries, the very foundation of a functioning civil service, have been subjected to a series of brutal austerity measures,” he said, pointing out that “between September 2023 and February 2024, salaries were slashed on three separate occasions, and each cut a grievous wound inflicted upon the already strained finances of civil servants,” he emphasized. He argued for a toxic cocktail of corruption, rampant inefficiency, and a complete lack of accountability as the primary culprits.

In a statement issued in late April 2024, the Wolaita National Movement expressed concerns regarding the prolonged delays and irregularities in the disbursement of salaries to government employees within the Wolaita Zone of the South Ethiopia Regional State.

The party emphasized its ongoing vigilance in addressing grievances raised by civil servants in the Wolaita Zone who have reported non-receipt or partial receipt of their wages. Salaries, which are scheduled for disbursement at the end of each month, have consistently been delayed by 10 to 20 days since 2020.

According to the statement, the situation worsened between September 2023 and February 2024, during which salaries were distributed in three installments, with one-third of the total amount deducted on each occasion. The issue escalated significantly in March 2024, when salaries for employees across all government institutions, except those in Wolaita Soddo City, were reduced.

Since then, up until April 2024, workers have faced substantial social, economic, and psychological hardships due to the irregular and incomplete disbursement of their salaries. The opposition party noted that over 70% of public schools in the zone have suspended operations since early April 2024, as teachers remain unpaid.

The issue of delayed salary payments for civil servants extends beyond the Wolaita Zone.

A report published by the Ethiopian Human Rights Commission (EHRC) in December 2023 identified similar delays and non-payments in newly established regional states, including Central and Southern Ethiopia.

The EHRC report specifically highlighted the situation in the Hadiya Zone, where salary delays affecting approximately 9,000 teachers have been ongoing since 2019.

The situation reportedly deteriorated in August 2023, with wage cuts implemented for government employees. These financial hardships allegedly led to disruptions in public services and forced residents to seek healthcare outside the zone.

Addis Standard has documented widespread salary delays affecting government employees across multiple districts of the Hadiya Zone since June 2022.

In December 2023, Addis Standard published a news article detailing the alleged arrests of educators in the Hadiya Zone who protested against the persistent salary delays.

EHRC interviews with Hadiya Zone administrators revealed that the delays impacted civil servants in eight out of the zone’s nineteen districts.

The administrators claimed that while the budget allocated by the regional government fell short of requirements, the full amount designated for salaries was forwarded to city and district administrations. However, these local authorities reportedly used part of the funds to settle previous debts, leaving an insufficient amount to cover salary payments in full.

During a parliamentary session held in June 2024, Ethiopian lawmakers raised concerns about the newly established regions’ struggle to pay employee salaries.

Minister Ahmed Shide responded that the three new regions formed from the Southern Nations, Nationalities, and Peoples’ Region (SNNPR) had received their share of the SNNPR’s budget subsidy at the time of the split.

Elaborating about their fate in the near future, Ahmed outlined, “The newly established regions will divide the budget that will be allocated to the former SNNPR among them based on the existing budget formula until the House of Federation comes up with a new budget allocation formula.”

The national budget for the 2024/25 fiscal year has been approved at a total of 971 billion birr. Of this amount, 23% (or 222.7 billion birr) has been allocated for regional subsidies. The remaining budget is divided between recurrent and capital expenditures, with allocations of 451 billion birr and 283 billion birr, respectively.

In terms of the regional distribution of subsidies, the newly established Central Ethiopia region will receive 12.8 billion birr from the federal government.

Additionally, allocations of 6.7 billion birr and 15.2 billion birr have been designated for the Southern West Ethiopia and the South Ethiopia regions, respectively.

Tassew Tadesse (PhD), a senior researcher and leader of the macroeconomics team at the Ethiopian Economic Association, explains that regional budget subsidies prioritize population size (65%), development level (25%), and regional income generation (10%).

“This formula disadvantages newly formed regions, often with smaller populations, limited economic activity, and low income-generating capacity,” Tassew argued.

According to the expert, the newly established regions are still operating using the budgets that used to be allocated for zones.

“They are grappling with restructuring offices and staffing at the regional level with these budgets, which creates a mismatch between the region’s needs and the available resources, resulting in significant chaos and hindering their ability to function efficiently,” he underscored, adding that “the hurried establishment of these regions without proper assessments of manpower needs, office restructuring costs, and budget requirements has left them unprepared for the financial realities of regional governance.”.

Crisis in campus kitchens

Financial constraints are not limited to the regional level but also extend to public universities under federal administration. Rising food costs, coupled with stagnant government funding, have hampered the universities’ ability to provide daily meals to students.

An instructor at Ambo University, holding a PhD qualification, spoke on condition of anonymity due to safety concerns. He revealed that the daily meal allotment for each student has been halved.

“Previously, the allocation provided for one student is now being split between two students,” he informed Addis Standard.

As a consequence of this budgetary challenge, undergraduate students in their first, second, and third years were unexpectedly instructed to vacate the campus on 06 June, 2024. This directive came immediately following the completion of midterm exams and significantly preceded the final examinations.

“We have not completed the coursework designated for this academic year,” stated a student from Ambo University who wished to remain anonymous. “We were forced to leave the campus before the final exam, having only just finished our mid-terms.”

Compounding the difficulties, many students, especially those who do not participate in the university’s meal plan, have not received their designated stipend for over two months.

Furthermore, students utilizing the cafeteria reportedly experience insufficient food portions, with some forced to share a single “Injera” between two individuals.

University sources indicate that all public institutions are being directed to reallocate resources originally designated for the remainder of the academic year to accommodate incoming summer program students.

Ambo University finds itself grappling with a significant challenge: a resource scarcity driven by persistent inflation.

Mengistu Tulu (PhD), the university’s public relations director, provides a clear explanation of the situation. “The budget, allocated before the onset of inflation, is demonstrably inadequate to meet the current rising costs of essential goods and services,” he stated.

Without the identification of a suitable solution, it will be exceedingly difficult for higher learning institutions to accommodate students during the forthcoming academic year.” Lemi Guta (PhD), President of Adama Science and Technology University

The budgetary limitations imposed on higher learning institutions are likely to persist.

Public universities in Ethiopia will be compelled to revise their menus for the upcoming academic year in order to navigate the challenges posed by rising inflation.

During a budget hearing held in May 2024, the Ministry of Finance instructed all 25 public universities to adjust their budgetary plans to adhere to established spending limits. However, university administrators expressed significant concerns regarding the adequacy of these allocated funds.

Lemi Guta (PhD), President of Adama Science and Technology University, voiced his anxieties during a parliamentary session organized by the Budget and Finance Affairs Standing Committee in June 2024.

He specifically highlighted concerns about the universities’ ability to provide adequate meals for students in the upcoming fiscal year.

“The current situation regarding student stipends is well-known,” he stated. “Without the identification of a suitable solution, it will be exceedingly difficult for higher learning institutions to accommodate students during the forthcoming academic year.”

Mengistu acknowledges the stark discrepancy between the projected cost of living at the time of budget allocation and the current economic realities.

Nevertheless, he expresses guarded optimism, trusting that the government will recognize the seriousness of the situation. Consequently, he anticipates an adjustment to the university’s budget in future years to account for the inflationary pressures.

While Mengistu expresses optimism, experts such as Tassew contend that public universities are succumbing to the strain of budgetary shortfalls.

To substantiate this claim, Tassew cites the current allocation for student meals, which remains at a meager 22 birr per student per day. “This amount is demonstrably inadequate in light of the precipitous rise in food prices,” he stressed.

Furthermore, the expert revealed a concerning trend of shrinking budgets for public universities in recent years, jeopardizing the long-term viability of such resource reallocation strategies.

“University budgets have declined by 20-30% over the past three years,” Tassew stated. “In response, there is a growing impetus towards university autonomy, encouraging them to achieve self-sufficiency through research and educational fees.”

Atlaw Alemu (PhD), a senior researcher at Addis Ababa University, delves into the root causes of budgetary limitations.

He argues that such limitations arise when expenditures outpace revenue, creating a perilous gap known as a budget deficit.

To address this challenge, Atlaw recommends pursuing a path towards financial stability.

“The culprits behind budget deficits are often alluring propositions such as increased spending on social programs that uplift communities, a robust military for national defense, or ambitious infrastructure projects,” he explains. “While each of these endeavors is vital, they all carry a substantial financial burden.”

Furthermore, Atlaw highlights the other side of the coin: a precipitous decline in revenue.

“Economic downturns stifle business growth and individual incomes, leading to a sharp drop in tax collection, further exacerbated by security and other related problems,” he adds.

Tassew proposes a two-fold solution to address budgetary limitations: firstly, by securing lasting peace, and secondly, by implementing sustainable economic reforms.

“These reforms should encompass broadening the tax base to integrate a wider range of potential taxpayers and address the pervasive issue of tax informality,” he argues. “Furthermore, a short-term strategy of minimizing non-essential expenditures can provide immediate financial relief.”

In Tassew’s view, a multifaceted approach that combines spending adjustments, targeted tax increases, economic growth initiatives, and entitlement reform is likely to be the most effective strategy.