ADDIS ABABA – The Council of Ministers has approved 561.7 billion Birr proposed budget for the upcoming Ethiopian fiscal year that begins on July 8, 2021.
In a statement, the Council said the proposed budget has shown 18 percent an increment when compared to the budget for the current Ethiopian fiscal year.
“Due attention is given to enhancing our productive capacity in line with the 10 year perspective plan, laying the foundation for Ethiopia’s inevitable prosperity,” Prime Minister Abiy Ahmed said following the approval of the the budget.
Out of the total 561.67 billion Birr budget for the year, 162 billion Birr is allocated for recurrent spending, 183.5 billion Birr for capital expenditure, 203.95 billion Birr for subsidy to regions, and 12 billion Birr for sustained development goals, it added.
After an extensive deliberation of the budget draft bill, the council of ministers has approved the bill and referred it to the House of People’s Representatives.
The Council of Ministers has also approved additional budget amounting to 26.4 billion Birr for government expenditure for the coming months.
The expenses incurred following the law enforcement operation in Tigray, provision of emergency aid to citizens affected by drought, displaced and returnees as well as prevention of COVID-19, subsidy for fertilizer, and curbing of flooding, among others, are the main reasons that necessitated the additional budget request.
The additional budget is expected to be raised from non-tax revenues and domestic loans as well as development partners in the form of aid and loan.
The council unanimously approved the draft budget and referred it to the House of People’s Representatives.