Oromia is the largest national regional state in Ethiopia, both in terms of population size and area coverage. The region has its own five year development plan (2005/06-2009/10), which has been prepared in tune with national five year development plan (PASDEP). The managing body of all planning activities in Bureau of Finance and Economic Development (BoFED). As for the formula applied to calculate the resources to be transferred to the Woreda, the very principles of the Federal Block Grant Formula are respected. However, Oromia is one of the regions that apply a formula which is based on a unit cost approach.