Council passes decision on medium-term macroeconomic and fiscal framework

Addis Ababa, April 26, 2023 (FBC) – The Council of Ministers of Ethiopia passed decisions in its 20th regular session held today, the Office of the Prime Minister confirmed.

It is stated that the Council discussed and passed a decision on the macroeconomic and fiscal framework for the medium term (2023/24-2027/28).

It has been pointed out that the framework mainly indicates that the government budget is prepared in line with macroeconomic objectives and contemplations.

In addition, the council confirmed that the budget planning tool used to identify and indicate the medium-term government revenue and expenditure as well as the fiscal balance policy directions has been prepared as a package for the preparation of the 2023/24 federal government’s detailed budget, indicating the revenue forecast, expenditure ceiling, budget support ceiling of the regional governments and the amount of the fiscal deficit.

It has been stated that the framework will enable the implementation of a financial utilization strategy to ensure fiscal soundness and overcome the fiscal risks faced by the country in the past years.

Therefore, taking into account the fact that the framework is intended to balance the government’s income and expenditure, the council after discussing the framework unanimously decided to implement it with additional inputs, as per the PM Office.