Ethiopia Approves Trillion-Birr Budget for 2024/25Ethiopia Approves Trillion-Birr Budget for 2024/25 Addis Ababa, July 4, 2024 (ENA) – The Ethiopian House of Representatives has approved a budget of 971.2 billion Ethiopian Birr (approx. $20.3 billion) for the upcoming financial year 2024/25. The approved budget represents a 21.1% increase from the previous year’s federal budget. Allocation of Funds Of the total budget: * 451.3 billion Birr is earmarked for regular expenditure * 283.2 billion Birr for capital projects * 236.7 billion Birr for regional state budget subsidies Regional states will receive 14 billion Birr in grants specifically for projects aligned with the United Nations Sustainable Development Goals (SDGs). Revenue and Debt The government aims to raise 563.6 billion Birr from tax and non-tax revenues. It has also allocated 139.3 billion Birr for debt servicing. Measures to Curb Inflation To control inflation, the government plans to limit borrowing from the National Bank of Ethiopia. Basis for the Budget The budget is aligned with Ethiopia’s 10-year Prospective Development Plan and macroeconomic and fiscal frameworks for the next five years. It prioritizes domestic financing and investments in productive sectors to boost productivity.
Addis Ababa, July 4, 2024 (ENA) The House of Representatives today approved a budget of Birr 971.2 billion for the upcoming financial year 2024/25.
The submitted budget represents an increase of 21.1 percent compared to the federal budget of the previous year.
Of the annual budget of nearly 1 trillion Birr, 451.3 billion Birr is earmarked for regular expenditure, 283.2 billion Birr for the implementation of capital projects and 236.7 billion Birr for regional state budget subsidies.
Of the grants allocated to regional states, Birr 14 billion will be spent on the implementation of projects to be carried out under the UN Sustainable Development Goals (SDGs).
In terms of tax collection, the government plans to collect Birr 563.6 billion from tax and non-tax revenues.
The country has also set aside Birr 139.3 billion to pay off debts.
In a bid to curb inflation, the government plans to restrict borrowing from the National Bank of Ethiopia, it was learned.
The budget is based on the 10-year Prospective Development Plan and the country’s medium-term macroeconomic and fiscal frameworks for the next five years, taking into account the government’s financial capacity and expected revenues and expenditures.
Priority is given to domestic sources of financing and investments in productive sectors to increase productivity.
