FY 2024/25 budget crafted to reinforce ongoing economic reforms – Finance Minister

Addis Ababa, June 11, 2024 (FBC) – The 2024/25 federal government budget was prepared in such a way as to ensure the continuity of the ongoing and the targeted economic reforms, and stabilizing the macro economy, Finance Minister Ahmed Shide told the House of People’s Representatives (HPR) today.

The House has referred the 2024/25 draft budget to the Plan, Budget and Finance Affairs Standing Committee for further scrutiny.

Delivering his budget speech, the minister said that the 2024/25 federal government budget was prepared to reinforce the implementation of the ongoing and the targeted economic reforms, and stabilizing the macro economy.

The budget is also crafted with the consideration of ensuring peace and national unity as the ongoing national dialogue is believed to play a major role in ensuring lasting peace and national unity, he noted.

For the minister, the First Homegrown Economic Reform, despite internal and external challenges, has been productive in various spheres.

The Second Homegrown Economic Reform under implementation is based on four major pillars: Realizing macroeconomic stability; improving investment and trade environment; increasing the capacity, productivity and competitiveness of sectors; and empowering of execution capability of the government.

The minister further revealed that the total budget of the federal government approved by the Council of Ministers is 971.2 billion Birr, a 21.1 percent growth compared to the previous budget.

Out of the total budget, 451.3 billion Birr is allotted for regular expense, 283.2 billion Birr for capital, and 236.7 billion Birr for regional governments.

The draft budget will go under extensive discussion by various relevant stakeholders before its approval by the House at the end of the ongoing Ethiopian fiscal year that ends this Ethiopian month.