Ethiopia increases annual budget by 17 percent

The Ministry of Finance of Ethiopia has proposed a total budget of 786.6 billion Birr for the next budget year of the country, which will start in July 8, 2022.

The amount is 16.6 percent more than the total budget of Ethiopia for the current year including the additional budget the House of Peoples Representatives (Ethiopian Parliament) approved a few months ago.

Of the total budget the Government aims to secure around 478 billion Birr from domestic revenue and foreign aid, according to Ahmed Shide, Minister of Finance who presented the draft budget to the Ethiopian Parliament on Tuesday.

During the year, the economy of Ethiopia is anticipated to grow by 9.3 percent, according to the Minister’s budget report, which also stated that the current 36.6 percent inflation is expected to drop to 11.9 percent.

The report also stated that during the next budget year, the country may face a total budget deficit of about 231 billion Birr. To cover the deficit, the government has planned to borrow 224 billion Birr from domestic sources, and 9.6 billion Birr from foreign lenders.