Tuesday, June 28, 2022
HomeEthiopian NewsEthiopia sees 231.4 billion birr budget deficit for the next fiscal year 

Ethiopia sees 231.4 billion birr budget deficit for the next fiscal year 

Reversing price inflation and security in the country given major considerations in the draft budget for Ethiopia’s upcoming fiscal year. The budget made assumptions that the conflict in the country would be ended by next year .

Ethiopia _ Ahmed Shede
Ahmed Shede, Minister for Finance, presenting draft budget to the People’s House of People’s Representatives on June 7, 2022 (Photo : screenshot from EBC video) 

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The Ministry of Finance on Tuesday announced a draft budget for the 2015 Ethiopian fiscal year ( 2022/2023 G.C).

Ahmed Shade, the Minister, said the budget gives special attention to the security of the country, debt payment, humanitarian support, and reconstruction work. 

The Ministry also plans to bring down price inflation in the country, which is currently 36.6 percent, to 11.9 percent.  

Based on a report from Ethiopian News Agency (ENA), state media, the government is planning to take serious measures to effect the desired result by preparing what the Federal government thinks are necessary policy measures and structural adjustments. 

The total draft budget for the coming fiscal year is 786.6 billion birr. It is up by 16.6 percent compared to the ending fiscal year.

In terms of breakdown, 216.1 billion birr will be allocated for the capital budget and 345.1 billion will be for the regular budget. 

209.4 billion birr is set aside for transfers to regional states.  Population size seems to be among the factors to be taken into consideration for distributing the subsidy for the ethnic-based states. 

14 billion birr is allocated for development projects.  

The Minister also said that the draft budget was informed by a macroeconomic forecast for next year. 

One major assumption that is made in the preparation of the draft budget is that the war in the country would be ended by next year and that the focus will be on reconstruction. 

Paradoxically, the security of the country would be among the top spending areas for the next fiscal year. 

Prime Minister Abiy Ahmed’s administration is also anticipating a 9.32 percent economic growth which was also taken into consideration in the preparation of the draft budget. 

Another plan is to cut imports from 18 percent, which is what is under in the current fiscal year, to 10.2 percent.  Among the measures to finance the budget are amendments to excise tax, value-added tax, and property tax.

The Federal government expects a 231.4 billion birr budget deficit. It plans to borrow from domestic and international sources to cover it. 

The draft was discussed in the House of People’s Representatives and forwarded to the Budget and Finance Standing Committee in the House. 

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11 COMMENTS

  1. Who really believes the garbage coming out of the “government” of Abiy the clown????

    “One major assumption that is made in the preparation of the draft budget is that the war in the country would be ended by next year and that the focus will be on reconstruction”

    “Paradoxically, the security of the country would be among the top spending areas for the next fiscal year”

    “Prime Minister Abiy Ahmed’s administration is also anticipating a 9.32 percent”.

    Reality on the ground:
    1) Abiy the Terrible told his vast subjects from his Oromumma Thorne of Bloody Bushes, the war was over in 17 days, and TPLF had been turned into quote”yetbetene duqet” I.e. “scattered powder”.
    2)he told the Ethiopian defense force has contained the TPLF and constrained their incursion into other lands and asked his army to move out.
    3)Soon Afar was invaded, Gonder was invaded and Wollo was invaded and the 100 million plus subjects, not citizens, were told TPLF was already in North Shoa.
    4) Price of edible oil skyrockets to 1000 birr per 5 liters, and Abiy the clown tells a 6 grader had just opened an oil processing plant in Bahia Dar. So far nobody has seen a drop of oil from the non existent factory for which aribbon was cut by the Oromumma Fanatic.
    Meanwhile his self appointed Current Mayor of Addis Ababa and former Qebele chairwoman tells Addis Ababans 2.5 billion has been spent on renovating Addis city hall. The Addis City Hall clock still tells the time correctly only twice in 24 hours. What a renovation.

    Bottom line, lies,lies and more lies, nothing but lies.

    • It seems that you are one of the angry and frustrated TPLF guys who are engaged in negative and destructive lies. The problems the country is struggling with at the moment are also the legacies of the TPLF rule.

  2. Good job and excellent news!!! For those of you bigots we have made a habit of getting up in the morning with your demonic recital ‘Oromumma this and Neftegna that’ and reciting the same before you go to bed every night, this is really very bad news for you. The old country, that gem of the gem of the colored is telling you to jump in the lake and never come up! It is going to be around alive and kicking. Kicking your lazy A$$, I may add. You have been telling everyone that it is done, it is gone asunder. How about crawling back to where you came from and eating your crow?
    Meanwhile, I would like to take a moment to thank this patriot countryman H.E. Obbo Ahmed Shide for his extremely valuable service to the country we all left behind and still keep tucked close to our hearts.

  3. Of course what to expect when Ethiopia is hold hostage by a hooligan mafia groups shaking down every innocent journalists, innocent citizens with threat, imprisonments, and murdering!!

    The hooligan collection in the name of Prosperity Party aka Misery Party holding power itself is the biggest deficit of the country.

  4. This is not a rocket science why there will be a budget deficit in Ethiopia.
    Go to the pockets, local and international bank accounts of Abiy Ahmed, Shemelis Abdissa, Berhanu Julaa, Adanech Abebe, Hailemariam Desalegn, Takele Uma and their lazy thieve families and relatives who are now the over night millionaires,

    They hate to work and earn their living like Amharas and other decent Ethiopians. Oromos today are the richest because they have made their living by looting and stealing Amhara land, houses, and properties.

    Same as Takele Uma Adanech Abebe is also building a “personality cult” and dictatorship in the city.

    • Abiye must rather continue governing the nation. There is nobody out there who comes even close to replace him. Democratic system has been established, although perhaps not perfect, and voters will have the right to replace him in the next election, although I feel they would vote for him overwhelmingly for a second term!

  5. Deficit financing is not good; it is like borrowing from future generations to finance government expenditures now. Many developed economies, like the USA, have for decades been doing the same thing, but Ethiopia does not have the economic strength such countries have. By default, the US has been (is) the Central Bank of the world because of the dollar’s de facto international currency; just print more dollars and pass the consequences on to world economies. That, however, is changing slowly (and recently more rapidly) because of increasing use of ‘new’ medium of international exchanges like Crypto Currency by large and important international economies like China, Russia, and others; more copycats would surely emerge.

    The predictable consequences of deficit federal budgetary financing in Ethiopia would be higher inflation, accelerated devaluation of the Birr, and deepening poverty particularly for salaries employees. In strange ways, that may encourage people to abandon public employment in favor of private engagement in all sorts of activities to deal with their economic miseries; farming (urban and rural) is one possibility simply because that is where the greatest potential exists. Another consequence might be urban-rural migration as those who flocked to cities earlier (and those contemplating to migrate from rural to urban centers) change course because life in urban areas would be unbearable for them, and hence move back to their roots to survive. In another strange way, traditional poor farmers could be the beneficiaries of miseries on urban economies brought by the “modern” economic system.

  6. Worqu, great analysis. The Ethiopian civil sector of today is not the civil sector of yesterday. This can be quickly inferred by a rapid scan of the CVs of former and current employees in all areas.

    1) PM Aklilu Habtwold (Sorbonne graduate law, economics)
    2)PM Endalkachew Mekonnen (Oxford University)
    3) Dr Minase Haile ( law /economics -Columbia University/University of Wisconsin)
    4) Dr. Haile Giorgis Workeneh former mayor of Addis Ababa (Carnegie Mellon phd graduate and a US registered civil engineer )
    Etc.

    Nowadays, the civil sector is replete with frauds, charlatans, embezzlers, murderers and thieves. No sane person joins the government sector drowned with so much corruption, not an iota of ethics and no moral compass from top to bottom. It is not by accident that the misery of the nation and her beautiful people multiplies by the minute. The stink is at the top of the helm and goes down to the tail end.

  7. Look at all those money and power worshiping thugs calling themselves the Prosperity Party!
    Have they ever been audited for how much money they got and how they got that much money and wealth?
    What kind of education or experience do they have to justify the wealth and money they have accumulated while millions of Ethiopians income and lifestyle is descending down to abject poverty.
    On on earth when the country is suffering in poverty, war and displacement the wanna be King Abiy the Vampire that sucking Amhara blood is on the move to internally displace more Addis Abeba residents in order to erect a Palace that will cost million dollars just for himself.
    Abiy preemptive speech saying land everywhere including those who think they owned the land because they built houses and live in it belongs to government ( meaning Abiy Ahmed and Orommuma daytime hyenas’ property in the name of a government) was followed by removing Flamingo area residents to erect Oromia office building to appease Shimeles the wanna be important and for Adanech Abebe another millions of dollar expensive office so they will not get jealous.

    Of course the origin of the money would not be disclose except for to preemptively dismiss it by saying some of it covered by Sheikh Mohammed Bin Zayed of UAE and the rest will not be up for question. If anyone attempts or dares to ask he or she will be sent to the Shimeles control Oromia dungeon.

    The question is how did the Biggest Hyena and Vampire Abiy Ahmed completely lost insight on how he cannot fulfil his wildest dreams by begging, borrowing or receiving bribes and gifts from foreign powers in the name of Ethiopia???????????????? Especially even without disclosing it? In any legitimate government or county this lands any government official in jail.

  8. The moronic PM Abiy the terrible said the following. In this day and age, Addis Ababans need parks and recreation areas. This was one of the justifications he used in naming Menilik Palace or part thereof Unity Park. Now he claimed to be pro Ethiopia and stated the Jubilee Palace full of Ethiopia’s greatest historical, diplomatic and international relations journey will be open to the public.

    Now why on earth he wanted to build another palace where he was blabbering about lack of public parks and recreation areas for the city of millions is not that much a mystery. When the Oromummma agenda and manipulations, the purposeful destruction of monuments and historical focal points in the city by the fanatic Oromumma clan and sycophants are all seen in context, the curtain is opened for all to see what is lurking behind.

    By the way, those ugly peacock grotesque mumbo jumbos by Emperor Menilik’s Palace need to go. The reason is simple. They look very ugly, and just look so much disfigured and unartistic. They are cheap and gaudy too.

  9. TPLF is the ‘biggest hyena and vampire’ Ethiopia ever faced, and the very smart Abiye managed to get rid of the day light hyenas systematically. I must add virtually all Tigres must go eventually also!

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