The Ministry of Finance of Ethiopia proposed 801.65 billion Birr annual budget for 2016 Ethiopian Calendar that begins July 8, 2023.
The proposed annual budget is shows about 35 percent budget deficit. In his budget speech Minister of Finance Ahmed Shide told the members of Parliament on Thursday indicated that out of the total proposed budget 281.05 billion Birr is gross budget deficit.
“The net budget deficit 227 billion Birr (2.2 percent of GDP),” he said. The Minister indicated that most of the deficit is expected to be financed from domestic sources. About 241.95 will be collected from domestic borrowing – treasury bill and medium-term loan.
He indicated that the remaining 39.1 billion Birr comes from external loans. The Government of Ethiopia expects to collect a total of 520.6 billion Birr, which is 27% more from this year. Out of the proposed total annual budget 214 billion Birr goes to regions as subsidy. Ethiopia’s economy is forecasted to grow by 7.5 percent this year, and 7.9 percent next year, according to Minister Ahmed Shide.
Because of the economic hardship the country is facing, the Government of Ethiopia will not recruit new employees next year, according to the Minister.