Borkena
Toronto – Ethiopia’s Minister For Finance Proposed 1.2 trillion birr budget for the 2025/2026 fiscal year – the 2018 Ethiopian fiscal year. The amount is for a regular budget.
Proposed budget for capital expenses is 450 billion birr. Budget for transfer to regional governments is 315 billion birr. Another 14 billion birr is allocated for supporting sustainable development goals.
News release from the parliament indicated that the Minister explained the next budget is focused on covering social expenses, continuation of ongoing “development works,” stabilizing the macro-economy and reduction of debt burden.
It is stated that the capital budget will be spent on infrastructures – particularly expansion of roads and schools, irrigation and “modernization” of agriculture, food security in rural and urban areas, and ensuring “developmental safety net.” Clean drinking water and the construction of government offices (unspecified) is in the spending list.
The health sector is also cited as an area of focus. According to the news release, the budget is planned in consideration of expansion in the health sector. But there is no further explanation. Notably, health professionals in the country are on strike demanding a livable salary amid worsening the cost of living crisis in the country.
Furthermore, the disclosure from the parliament indicated that there will be spending on the rehabilitation of war affected areas of the country. An active conflict is still underway in many areas of the Amhara region and parts of the Oromia region.
“The proposed budget is prepared in consideration of the 10 year’s development plan and macro-economic reform,” Ahmed Shide is cited as saying.
As well, the minister told parliamentarians that the task of increasing government revenue and increasing regional states revenue, and strengthening the tax administration will be given special attention.
The proposed budget is much higher compared to last year. However, the growth in budget this year rather seems to be nominal in view of the depreciation of Ethiopian birr. It lost well over 100 percent of its value after Abiy Ahmed’s administration introduced a “market based” currency exchange regime as part of what appears to be IMF imposed economic reform which is packaged as a “homegrown economic growth” agenda.
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