Ethiopia’s House of Representatives Approves ETB1.5 Trillion Budget Amid Economic Reforms

The House of People’s Representatives of the Federal Democratic Republic of Ethiopia has approved an additional ETB 582 billion for the 2017 fiscal year, raising the national budget to ETB 1.5 trillion birr. This decision aligns with the government’s macroeconomic reforms aimed at stabilizing the economy and promoting sustainable growth.

Finance Minister Ahmed Shide stated that the increased budget reflects the country’s growing gross domestic product and population, enabling Ethiopia to address key economic and social priorities. He also mentioned that next year’s budget is expected to increase further, driven by the government’s reform-focused approach to economic management.

The approved budget includes revenue sources such as 281 billion birr from taxes, 123 billion birr from foreign aid, and ETB 177.5 billion from budget loan support. Major allocations have been made for subsidies on essential goods like fertilizer and fuel, funding for the Safenet program to assist vulnerable communities, and servicing domestic and foreign debts.

The additional budget also accounts for adjustments in expenses to meet rising development and operational costs, ensuring alignment with the broader goals of the macroeconomic reforms. These reforms aim to address inflation, improve resource allocation, and enhance economic resilience in response to domestic and global challenges.