MPs approved the bill with unanimous vote

House Approves 971.4 Billion Birr Budget for next Fiscal Fiscal Year

ADDIS ABABA – The House of Peoples Representatives has approved a 971.4 billion Birr or approximately 17 billion USD budget for the 2024/25 fiscal year that starts on Monday, July 8.

The budget is a record high with 21.1 percent or 169.56 billion birr increase over the concluding fiscal year which was 801 billion birr (or $15.1 Billion).

The bill says the budget was prepared with a view to achieve the development goals set in the mid-term macroeconomic and fiscal framework.

It also focuses on supporting displaced people, and rehabilitating damaged infrastructures as well as debt repayment and preserving national security.

Of the total budget, the highest amount – 451.3 billion Birr – is earmarked for recurrent spending.

About 283.2 billion Birr is also allotted to the capital budget while 222.7 billion Birr is set aside to subsidize regional states. The remaining 14 billion Birr is allocated to implement Sustainable Development Goals (SDG).

The budget is forecasted to record a deficit in 2023/24 of 358.50 billion birr or 2.3 percent of gross domestic product.

The government would borrow 325.6 billion birr domestically to address the deficit with the remaining 32.9 billion birr coming from external sources.

The House unanimously voted to approve the budget bill during their session on Thursday.

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