Nation Revises Subsidy Formula, Prepares Close to 179 Billion Birr Budget for 2014/15

Exactly a year after the Population and Housing Census Commission unveiled the results of inter census population sample survey, the House of Federation on May 30, 2014,  approved a revised federal subsidy budget allocation formula for regions. The new formula will be used starting from the next fiscal year up to 2016/17.

The existing budget formula, which was approved three years ago, was supposed to last until 2015/16. However, due to the controversy about the exact population size of the Amhara Region, the House of Federation decided the Population and Housing Census Commission to check the results of the 2007 national census survey using inter census population sample survey. The population of Amhara Region has been estimated as 17.2 million giving an average annual growth rate of 1.7Pct since 2007 census. However, the inter census report published by the Central Statistical Agency last year reveals that during the five years prior to the inter census survey the Amhara population grew by 2.3Pct annually. Because of this close to 500,000 people were uncounted and not considered in the subsidiary budget distributions.

RegionNewPreviousDifference (%)
Tigray 7.15 7.18 -0.03
Afar 3.12 3.15 -0.03
Amhara 23.24 23.17 +0.07
Oromia 32.45 32.50 -0.05
Ethiopian Somali 8.12 8.14 -0.02
Benishangul-Gumuz 2.15 2.10 +0.05
SNNP 20.11 20.10 +0.01
Gambela 1.50 1.50 *
Harari 1.00 1.00 *
Dire Dawa 1.16 1.16 *

The recently approved budget formula, however, corrected this miscalculation and granted the Amhara Region additional 0.07Pct while Benishangul-Gumuz also gained a 0.05Pct increment when allocation of the subsidies by the federal government is made. “Although it took almost five years, it is a great gain for Amhara Region to be able to increase its share in the federal budget subsidy formula,” Tilahun Bogale (PhD), who has been involved in the preparation of the previous budget appropriation formula in 2009, told EBR. Starting from the next year, Amhara Region will enjoy 23.24Pct of the total regional budget subsidy from the federal government. 

Even though Oromia lost 0.05Pct of its share, it will continue to receive the largest budget subsidy from the federal government. Beginning from 2014/15 fiscal year, the region will be entitled to 32.45Pct of the total budget subsidy. Ethiopian Somali’s share also went from 8.14Pct down to 8.12Pct. 

Benishangul-Gumuz and Southern Nations, Nationalities and Peoples’ (SNNP) regions gained 0.05 and 0.01Pct, respectively. From now on, Benishangul-Gumuz will enjoy 2.15Pct of the regional subsidy budget while SNNP take 20.11Pct. The share of Gambela and Harari regions as well as Dire Dawa remained the same.

In the current fiscal year, the federal government allocated 43.1 billion Birr in subsidies, of which 32Pct; 13.9 billion birr went to Oromia. Amhara, SNNP, Ethiopian Somali, and Tigray regions received 9.9 billion, 8.6 billion, 3.5 billion, and 3.1 billion Birr, respectively.

For the coming Fiscal year 2013/14 the Council of Ministers has passed a budget bill, pending for the approval by the parliament which comprises a federal budget that amounts 178.6 billion Birr, a 15.3Pct increase from 154.9 billion approved for the current fiscal year. A total of 51 billion Birr will go to regional subsidy where as close to 70 and 45 billion Birr of this budget will be for capital expenditure and recurrent spending, respectively. The rest about 15 billion is slotted for programs under the MDGs.

The previous formulas for the allocation of budget subsidies to the regional states, which sometimes called unconditional budget grants, has been developed based on the findings of a detailed quantitative assessment of the population size, the relative expenditure needs and revenue raising potentials of the regions. In an attempt to redress the imbalances among the developed and the less developed regions, one percent of the total subsidy budget will go to Somali, Benishangul-Gumuz, Afar, and Gambella regions unconditionally. The only variable changed in the new formula is the population, which is changed by the results of the inter census report.


2nd Year . July 2014 . No.16


17 comments

  • Williamsar

    epharmacy
    Canadian Drugs
    cvs online pharmacy
    Canadian Drugs
    real canadian superstore flyer

    Williamsar Tuesday, 19 September 2017 13:58 Comment Link
  • DerrickFam

    online pharmacy
    Canadian Online Pharmacy
    Online Drugstores
    Canadian Online Pharmacies
    Legitimate Canadian Mail Order Pharmacies

    DerrickFam Tuesday, 19 September 2017 02:55 Comment Link
  • DonnieHause

    cialis discount price
    cialis canada
    ac uk buy cialis
    cialis online canada pharmacy
    discount cialis pills

    DonnieHause Monday, 18 September 2017 05:37 Comment Link
  • LouisSeaps

    scary movie 4 viagra online
    viagra online
    buy viagra online
    what is the difference between cialis and generic cialis
    cialis online pharmacy
    cialis online
    canadian cialis cheap

    LouisSeaps Friday, 15 September 2017 12:05 Comment Link
  • FrankIcolf

    rehabil
    alcohol rehab facilities
    drug and alcohol centers
    rehab addict
    withdrawal symptoms from tramadol

    FrankIcolf Friday, 08 September 2017 02:20 Comment Link
  • DennisGer

    viagra online no prescriptions uk
    viagra without doctor
    buy viagra nigeria
    viagra without prescription
    online dr viagra

    DennisGer Tuesday, 05 September 2017 08:16 Comment Link
  • Edwardkab

    sildenafil 50 mg evora
    viagra without prescription
    buy viagra united states
    viagra without doctor
    get viagra bangkok

    Edwardkab Saturday, 02 September 2017 08:57 Comment Link
  • BobbySuero

    order cialis and viagra
    cialis professional
    viagra and cialis for sale
    cialis professional for sale
    cheap cialis india

    BobbySuero Friday, 01 September 2017 08:49 Comment Link
  • Georgeadjuh

    buy generic levitra online
    buy levitra
    buy levitra discount
    buy levitra online
    where to order levitra online

    Georgeadjuh Saturday, 19 August 2017 08:02 Comment Link
  • Peterlep

    can you buy viagra high street
    generic viagra online
    buying viagra in cancun
    viagra generic
    what is female viagra pills

    Peterlep Thursday, 17 August 2017 21:43 Comment Link

Leave a comment

Make sure you enter the (*) required information where indicated.Basic HTML code is allowed.

Latest News

Ethiopia to Host the 4th International Coffee Conference

Ethiopia to Host the 4th International Coffee Conference

Ethiopia is set to host the 4th International Coffee Conference from March 6 – 8, 2016 in Addis Ababa at the United Nations Conference Center. Previous conferences were held  in England in 2001, Brazil in 2005 and Guatemala in 2010. Read more

Most Popular

  • 1
  • 2
Prev Next

The White-Box of Ethiopian Agriculture

The agricultural sector remains our Achilles heel, nonetheless, we remain convinced that agricultural-based development remains the only source of hope ...

Read more

For Whoever Has, to Him Shall be Given …

As the Ethiopian government seeks to transform the economy into one that’s rooted in manufacturing, the simplicity for local investors to access finance...

Read more

Commentary

  • 1
  • 2
  • 3
Prev Next

Shooting in the Dark: The Anomalies of Headhunting

The war for ‘heads’ – also known as talent – has been raging for many years and the manner headhunters ‘poach’ people is getting tougher ...

Read more

Understanding Chinese Investment in Ethiopia A Critical Evaluation of the World Bank’s “Chinese FDI in Ethiopia” Survey

The World Bank country office in Ethiopia, apparently in response to the request by the government of Ethiopia, has conducted a survey of...

Read more

Mitigating Growing Income Inequality: What Needs to Be Done

Rising income and wealth inequality in many countries around the world has been a long-term trend for three decades or more. But the atte...

Read more

View Point

  • 1
  • 2
  • 3
Prev Next

Delivering Life Insurance: The Untapped Market in Ethiopia

Modern insurance transaction in Ethiopia was started by an Egyptian Bank in 1905. According to Ethiopian Chamber of Commerce there were 19, 33 and 40 insuran...

Read more

Headache When a Key Personnel leaves a Company in the Financial Sector

The financial sector in Ethiopia has undergone considerable changes in recent decades. The dramatic rise of new market players into the sector has vividly al...

Read more

Women and the World Economy

In many countries, public debate about gender equality focuses mainly on women’s access to top positions and high-powered career opportunities. But the “glas...

Read more