The PDO is to improve efficiency, transparency and accountability of public expenditure at the federal and regional levels.

The development objective of the Public Financial Management (PFM) Project for Ethiopia is to improve efficiency, transparency, and accountability of public expenditure at the federal and regional levels. The project comprises of three components. The first component, improving expenditure management and information systems objective is to support the government in implementing the next generation of PFM reforms through the government-funded integrated financial management information system (IFMIS) roll-out plan. It consists of following four sub-components: (i) support for IFMIS rollout and integrated budget and expenditure system (IBEX) enhancement; (ii) support the project management office (PMO); (iii) PFM systems strengthening in coordination with the IFMIS roll; and (iv) IFMIS and PFM academy. The second component, strengthening accountability institutions aims at supporting accountability institutions in the performance of their tasks. It consists of following four sub-components: (i) strengthening procurement and property management; (ii) capacity building for oversight functions; (iii) development of the accountancy profession; and (iv) support for strengthening fraud and corruption mitigation activities. The third component, program management, monitoring and evaluation will ensure project implementation, the effective monitoring, and evaluation of results and a consistent and effective approach to capacity development, the project will support program management and co-ordination related tasks.