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HomeLatestBudget deficit of 2023/24 Ethiopian FY increases by 50 billion birr

Budget deficit of 2023/24 Ethiopian FY increases by 50 billion birr

By Staff Reporter

ADDIS ABABA – (BORKENA) – The total budget allocation of the 2023/24 Ethiopian Fiscal Year has faced a deficit of 281 billion birr, Ministry of Finance disclosed. This is bigger than the current budget year, according to the Minister of Finance.

Minister of Finance, Ahmed Shide said while presenting the Federal Budget Bill to the House of Peoples Representatives that comparing the deficit rate of the coming new budget with the just ending one, there “is a difference of 50 billion birr increment”. 

It is to be recalled that the Council of Ministers has forwarded to the House of Peoples Representatives a budgetary request bill of birr 801.65 billion for the 2023/24 Ethiopian Fiscal Year.

Ahmed Shide said on the occasion that the budget of the 2023/24 Ethiopian Fiscal Year faced a 281 billion birr budget deficiency. The budget of the current ending Fiscal Year has reportedly been constrained by 49.6 billion birr deficiency.  

The budget allocation of the 2022/23 Ethiopian Fiscal Year was birr 786 billion and it faced a deficit of birr 231.4 billion, according to Minister Ahmed Shide.

Ahmed indicated that the budgetary support expected from development partners during the just ending budget year has shown a big decline. “The budgetary support, which was planned to be secured, has not been achieved,” he said.

Minister Ahmed Shide said that following the increment of state expenditures, the government was enforced to fill budget gaps using domestic loans. He further said that the budget deficit of the 2023/24 Ethiopian Fiscal Year would be covered by local and foreign loans. Of the total budget deficiency, 242 billion birr will be covered from domestic loans while the 39 billion birr budget gap will be covered from loans to be taken from external sources, according to Ahmed Shide. 

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