ADDIS ABABA – Yesterday, the proposed 387 Billion Birr national budget for the financial year 2019/2020 was presented to the Parliament for first viewing and deliberation.
Presenting the draft budget to the Parliament, Minister of Finance Ahmed Shide stated that the proposed budget for the fiscal year 2019/2020 represent an increase of 6.1 billion Birr compared to last year’s budget.
Out of the proposed budget, 109.5 billion Birr is allocated for recurrent expenditure, 130.7 billion Birr for capital expenditure, 140.8 billion Birr for budget subsidy to regional states, and six billion Birr for the execution of the Sustainable Development Goals (SDGs).
The Minister indicated that 63 percent of the proposed budget will go to priority areas that are identified critical in spurring economic growth; sectors like education, road, agriculture, water, health and urban development.
He also highlighted that the estimated budget deficit is 7.1 billion Birr, which is planned to be covered through direct budget support and domestic credit, among others. The Minister also told the Parliament that the existing budget subsidy allocation formula is used; and added that when the formula is revised in the future, the budget will be allocated accordingly.
In regards to fair allocation of the national budget, the Minister remarked that all regions should develop equally, and also highlighted that they need to organize and utilize the potential of the people at their disposal.
While pointing out that the regional states should employ their budget hugely on development endeavors, he lamented that there is not a problem that is solved by federal budget alone. Ahmed also said it is right for the federal capital budget to be fair, and this year’s budget is prepared with care and in a manner that is just. The proposed draft was referred to the Revenue, Budget and Finance Standing Committee.
The Ethiopian Herald, June 12/2019
BY ROBEL YOHANNES
