Ethiopia projects USD 5.7 billion annual budget
By Tesfa-Alem Tekle
June 11, 2010 (ADDIS ABABA) — The House of Peoples Representatives on Thursday heard a draft proposal of 77.2 billion birr annual budget that mainly targeted on the alleviation of poverty and development.
After parliament widely debated the proposed 2010/11 national budget, presented by Finance and Economic Development Minister, Sufian Ahmed, House unanimously referred the draft bill to pertinent standing committee for further scrutiny.
The proposed annual budget has seen 20 percent rise from 64.5 billion birr in 2009/10.
Briefing the House on the draft budget, Sufian said the budget was prepared taking the global financial crises and inflation rates of the country into consideration.
Over 80 % the proposed budget will be used for infrastructure, health, education, food security, capacity building and development.
Accordingly, he said, the capital budget, which mainly will be targeting on poverty reduction, will have the lion’s share of the total budget, 35.9 billion birr, some 19.7 % increase from last year.
The amount of budget earmarked to subsidize regional states will be 24 billion birr, 15 % increase.
The minister responded to questions posed by MPs.
Opposition politicians opposed 4.4 billion birr ($352 million) draft budget proposed for defense spending, 10 percent increase from last year. Opposition politicians argued the allotted defense budget was a lot and being back bone of the country what is allotted to agriculture, 10 % of the total budget is not satisfactory.
However Finance and Economic Development Minister, Sufian Ahmed said the international standard for defense is 2% of the annual total adding the proposed defense budget for 2010/11 is even less than that limit.
According to sofian the existing macro economic stability of the country is expected to continue next year.
Ethiopia expects to collect 41 billion birr from domestic revenue and 41billion Birr from foreign funds.
(ST)