7th of June, 2022 (ENA) The House of People’s Representatives (HPR) referred the 786.6 billion Birr draft budget bill for the 2015 Ethiopian fiscal year to the Standing Committee on Plan, Budget, and Finance Affairs during its 11th session today.
The economy, which has benefited from the Home-Grown Economic reforms, has faced many challenges, including domestic conflict, the COVID-19, desert locust, drought, and the Russia-Ukraine conflict, but has remained resilient, according to Finance Minister Ahmed Shide, who delivered the budget speech to parliament.
The draft budget represents a 16.6% increase above the combined regular and supplemental budgets of previous year.
345.1 billion Birr is allocated for recurrent expenditures, 218.1 billion Birr for capital expenditure, 209.4 billion Birr for regional subsidies, and 14 billion Birr for the execution of sustainable development goals out of the total 786.6 billion Birr draft budget for the coming fiscal year.
According to him, the draft budget bill focuses on debt repayment, humanitarian assistance, rehabilitation and reconstruction, building security forces’ capacity to protect the country’s security, poverty reduction and development projects, wheat and fertilizer subsidies, completing ongoing projects, assisting displaced people, and repairing infrastructure and services damaged by conflict and climate change.
It was learned that the majority of the budget will be funded by domestic sources by growing revenue streams, particularly by broadening tax bases.
The minister stated that the federal government expects to raise $477.8 billion from domestic and external sources of funding, with domestic sources accounting for 92 percent of the total and taxes accounting for 400 billion, or 84 percent of the total.
Ahmed stated that necessary policy and structural measures will be implemented in order to lower inflation to an average of 11.9 next year.
On his part, HPR Speaker Tagesse Chafo stated that lengthy deliberations on the draft budget bill will take place over the next month and that it will be presented to HPR for approval in June.
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