Addis Ababa June 09/2023 (ENA) Finance Minister Ahmed Shide said that Ethiopia would work to register 7.9 percent economic growth in the 2016 Fiscal year.
The minister explained to the House of People’s Representatives (HPR) the economic assumptions, the priorities of the nation’s economy as well as programs on Thursday.
Ahmed also pointed out that Ethiopia’s economy has been recording an average annual growth of 6.1 percent in the past years and it is expected to record a growth rate of 7.5 percent at the end of the current Ethiopian financial year.
Recall that the Council of Ministers referred this week 801.6-billion Birr budget for the Ethiopian fiscal year 2016 to the House of People’s Representatives.
Some 369.6 billion Birr has been allocated for recurrent expenditure, 203.9 billion Birr for capital expenditure, 214.07 billion Birr for regional states, and 14 billion Birr for Sustainable Development Goals (SDG).
The finance minister told the parliament that the forecast during the preparation of the budget was that the economy will record a growth rate of 7.9 percent in the fiscal year 2016.
By taking into account the growth projection of the economy, the basic expenses would be allocated to realize the plan, Ahmed stated.
According to him, the price of imported goods, which was 7.2 percent in 2015, is expected to grow to 18.9 percent in 2016.
When the draft budget was prepared, the minister noted that a strict monetary policy was employed by the medium-term plan, and an effort will be made to stabilize the current high inflation by limiting the supply of money.
The proposed budget for the next fiscal year has also been prepared by taking into consideration the second phase of the Home-grown Economic Growth Reform and forecast of the macro economy of the following year.
Moreover, the draft budget was prepared by taking into account the main fiscal goals, expenditure and revenue policies that the budget focuses on, the current macroeconomic situation and fiscal capacity, the minister elaborate.
As the direct loan taken from the National Bank of Ethiopia to cover budget deficit would show a significant decrease, corrective measures would be taken to collect the money injected into the economy through various loan methods in the past years, he said.
Speaking on the rehabilitation and reconstruction efforts of the nation, Ahmed stated that 20 billion Birr has been allocated from the government treasury to rebuild war-damaged infrastructures and to rebuild the community.
Provided by SyndiGate Media Inc. (Syndigate.info).