Ethiopian Parliament Approves Extra $4.8 Billion Spending for 2024/25
Ethiopian lawmakers have approved an additional 581.98 billion Ethiopian birr (approximately $4.8 billion) in government spending for the 2024/25 fiscal year, according to a broadcast of the parliamentary session on Tuesday.
This extra expenditure, approved by the cabinet last week, supplements the previously announced budget of 971.2 billion birr for the same fiscal year, reflecting a 21% increase over the previous year. The country’s fiscal year runs from July 8th to July 7th.
Finance Minister Ahmed Shide explained that the additional funds would be directed towards subsidies for essential commodities such as fertiliser, oil, fuel, and medicine. The decision comes as Ethiopia continues to recover from a series of economic challenges, including the fallout from the COVID-19 pandemic, a devastating two-year conflict in the northern Tigray region, and extreme weather events that have impacted the country.
Ethiopia’s approval for the extra spending follows a series of economic reforms and international assistance. Earlier this year, the country secured a four-year, $3.4 billion financing program from the International Monetary Fund (IMF), shortly after floating its currency on July 29th. The IMF program is part of the country’s broader efforts to restructure its debt and stabilize its economy.
The increased expenditure is seen as a step toward rebuilding the nation’s economy and addressing the ongoing challenges faced by its citizens, particularly in sectors like agriculture and healthcare, which have been hit hard by the recent crises.
