June 8, 2012 (ADDIS ABABA) - Ethiopia’s Council of Ministers has proposed a record 137.8 billion Birr (nearly $ 8 billion) annual budget for the 2012/2013 fiscal year, focusing on combating poverty.

The proposed budget, according to the Ministry of Finance and Economic Development, will mainly be allotted for priority projects such as infrastructure development, education, health and power generation activities, which will be carried out during the fiscal year, which in Ethiopia begins in July beginning July.

The majority 2012/2013 budget will be raised from internal income, while the balance - projected to be around $ 1 billion - will be mobilised from external sources in the form of loans and grants.

Just over more than 26.8 billion Birr ($1.5 billion) of the stated budget serves as the country’s regular budget, while over 54.4 billion Birr ($3 billion) is allocated for capital budget.

Over 36.5 billion Birr ($2 billion) of the budget is allotted to subsidize regional states while 20 billion Birr ($1.1 billion) is earmarked to support activities aimed to meet the United Nations Millennium Development Goals (MDGs).

The proposed draft budget, was formulated by taking into account the country’s current, economic, social situation and other important factors and has been referred to parliament for final approval.

(ST)