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The Ethiopian parliament recently approved a budget of about US$15.1 billion for the country’s 2022-23 fiscal year. The new financial new year for the country began on 8th July. The budget outlay has been hiked by close to 40%
The Ethiopian parliament recently approved a budget of about US$15.1 billion for the country’s 2022-23 fiscal year. The new financial new year for the country began on 8th July. The budget outlay has been hiked by close to 40%
The state budget for the fiscal year in Ethiopia is 786.61 billion birrs (about 15 billion euros) against 561.7 billion birrs in 2021-2022. The budget increase is 16.6% in real terms. Inflation stood at 37.2% year-on-year in May. The birr has depreciated by about 20% against the dollar over a year.
The budget allocates 345.1 billion birrs to general expenditure, 218.1 billion birrs to the capital budget, and 209.4 billion birrs to finance the regional states that make up the federal republic. In addition, 14 billion birrs are earmarked for the implementation of the Sustainable Development Goals (SDGs). The deficit is 231.4 billion birrs or 3.4% of gross domestic product.
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This budget is based on a growth forecast of 9.2% in 2022-2023, explained the Minister of Finance, Ahmed Shide when presenting the text to the MPs at the beginning of June. The government is forecasting growth of 6.6% for the fiscal year just ended, compared with the IMF’s forecast of 3.8%.
