By Tinishu Solomon |
The government of Ethiopia has proposed a record $10.6 billion budget statement for the coming fiscal year in a bid to boost spending on health, education and infrastructure, such as road construction.
The bill for Ethiopia’s next budget year, which runs from July 8 to July 7 2015 last week received approval from the council of ministers.
The minister of finance and economic development has since presented the bill, which has a 19.7 per cent increase from the previous one, to Members of Parliament.
Of the proposed $10.6 billion budget, 22.6 per cent has been set aside for recurrent expenditure and 37.4 per cent is for capital expenses.
The remaining 34.7 per cent and 5.4 per cent of the budget will be allocated to the regional states and implementation of Sustainable Development Goals (SDGs), respectively.
“Government plans to cover the capital budget, which is going to take much of the budget, from its own treasury, foreign aid and loans,” Sufian Ahmed, the Minister of Finance and Economic Development, told legislators while presenting budget bill on Tuesday.
Accordingly, two thirds of the budget will be catered for by the Horn of Africa country’s treasury, while foreign aid and loans will make up the remaining 14.7 per cent and 18.6 per cent, respectively.
The budget bill shows government’s determination to continue spending money on social sectors.
These include educations, health, water, road and rural electrification development programs, according to Sufian.
“From the total capital budget, 66.6 per cent will go to infrastructure development that needs the government’s immediate attention,” Sufian said.
“Besides, the country has set aside a chunk of the budget money for sectors such as manufacturing, export and urban development, with the intention of transforming the economy in a sustainable manner.”
The House of Parliament approved 178.6 billion-birr budget for the 2014-2015 fiscal year, a 15 per cent increase from the previous fiscal year.