Ethiopia parliament backs $4.8b spending increase

Ethiopian lawmakers approved on Tuesday a government plan to increase spending by $4.8 billion for the 2024/2025 fiscal year, according to a parliament broadcast.

The Cabinet approved additional spending last week, supplementing the already announced budget of 971.2 billion birr for 2024/2025, a 21 per cent increase from the previous year. Ethiopia’s fiscal year runs from July 8 to July 7.

The additional funds will be used to subsidise costs of fertiliser, oil, fuel, and medicine, Finance Minister Ahmed Shide told lawmakers.

Ethiopia is recovering from economic shocks, including the impact of the COVID-19 pandemic, a two-year war in the Tigray region, and extreme weather events.

The country secured a $3.4 billion programme from the International Monetary Fund (IMF) after floating its currency, paving the way for debt restructuring.

Attribution: Reuters

Subediting: Y.Yasser