ADDIS ABABA– Prime Minister Dr. Abiy Ahmed said that providing significant jobs for the growing the
youth population and keeping the inflation at the single digit as well as controlling deliberate shortage of goods would remain government’s economic priorities in the new fiscal year.
The Premier gave explanations on questions raised by members of the House of Peoples’ Representatives (HPR) yesterday in connection with the 2019/20 federal budget. During the session, the House unanimously approved close to 387 billion Birr for the reported year.
Expressing government’s desire to
support the youth to lead a productive life, he indicated that a plan has been set to provide three million jobs for the ever-increasing entrants to the labor market in the new budget year.
Agreements have been reached with Middle Eastern and European countries to send skilled labor force and the Government of United Arab Emirates expressed readiness to receive an initial 50, 000 trained and skilled Ethiopian youth.
“Providing a seamless infrastructural connectivity and power supply are crucial to attract global corporates into Ethiopia’s market,” Abiy said, adding that his government is working to ensure ease of doing business and creating a favorable business climate for labor-intensive companies.
According to him, the planned
infrastructural and other projects in Addis Ababa including ‘Beautifying Sheger’ Project could provide enormous jobs for the urban youth.
Noting the positive role of the increase in forex reserve could play for the overall economy, the Premier stated that the current reserve is exceeding that of last year same period by one billion USD. Furthermore, due attention has been given to ensure a timely completion of mega projects that have been drained the hardly gained foreign currency for loan repayments.
Ethiopia’s debt repayment capacity is healthy and successful activities are also underway to enhance product and productivity and build the trust of lending and donor countries.
Concerning inflation, Abiy said that the government is partnering with relevant bodies to modernize the logistics system and put in a place a stiff control mechanism to curb efforts to create a deliberate shortage in the supply of consumer and capital goods.
However, concerted efforts of all actors in the sector are crucial to keep inflation at a healthy single digit, he remarked.
Regarding to the approved budget, he said it has a 6.1 billion birr or a 1.6 percent increase as compared to that of the just-ending fiscal year. The draft budget which was endorsed by the HPR was released at the Council of Ministers on last June.
The budget allotted for regular expenses is birr 109, 468,582, 456 and 130, 710,876,568 billion is allocated for capital expenses, birr 140,775,506,265 for subsidy to states, and birr six billion for sustainable development.
Concerning the finance of capital expenses, the government sets plan to secure 94.5 billion birr from domestic sources and the balance would be covered from foreign loan, aid other sources. The capital expenses primarily allotted to education, health, infrastructure, agriculture and urban development activities, among others.
About regular expenses, 34 percent is allocated to salary payments, allowances and other fees and the remaining is meant for loan repayments and to cover different expenses and payments.
Members of the Parliament stressed that a timely release of the budget is necessary to enable both the federal and state governments to execute various works and urged stakeholders to utilize the budget for the allotted purpose.
The Ethiopian Herald July 9/2019
BY BILAL DERSO
