Ethiopia approves over $13b annual budget

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Ethiopia’s House of Peoples Representatives recently approved the over $13 Billion draft budget the country’s Council of Ministers referred to it last month.

The Budget and Finance Standing Committee of the Parliament has given detailed explanations on the budget allocated for next Ethiopian budget year, which began on July 8, 2021.

Out of the total proposed budget, more than $3.7 billion is allocated for government spending, $4.2 billion for capital expenditure, $4.7 billion for regional states’ budget and $279 million for implementation of sustainable development goals.

In February, the International Monetary Fund projected the country’s economic growth to be 2% in 2020-2021, largely due to the effects of the pandemic, but that it was expected to rebound to 8.7% in 2021-2022 in line with a global recovery.

Prime Minister Abiy Ahmed said the budget sees an eighteen percent increase compared to the budget allocated for the just ending fiscal year.  

Last year, Ethiopia had projected an 8.5% economic growth for 2020-2021.