Ethiopia endorses US$ 6 billion budget for 2011/2012


Posted on June 10, 2011 16:30

Some US$6 billion budget has been endorsed by Ethiopia’s council of ministers for the 2011/2012 fiscal year. It is the Horn of Africa country’s biggest budget endorsement on record.

80 percent of some US$ 2 billion allotted for capital budget projects are expected to go into infrastructure development (mainly roads), social services (including education and health), agriculture and water development.

The remaining will be used to support the nine regional states of the country during the fiscal year, between July 8, 2011 and June 23, 2012.

According to the Ethiopian council of ministers, who endorsed the budget after reviewing the current political and economic situation of the country, this year’s budget exceeds last year’s by around US$ 2 billion.

“The budget increase was made due to the current economic growth of the country,” said Abraham Tekeste, Ethiopia’s minister of Finance and Economic Development.

The Ethiopian Ministry of Finance and Economic Development has also announced that about US$ 3.6 billion of the total budget will be sourced from local resources while the remaining will be mobilized in the form of loans and grants from Ethiopia’s development partners.

Over US$1 billion of the money will come from grants, while the country’s development partners will provide some US$ 850 million.

Ethiopia has, for the first time, allocated over $ 750 million to support the Millennium Development Goals (MDGs). The MDGs aim to slash extreme poverty and hunger by half by 2015.

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