Capital Ethiopia Newspaper

Two ministries request seven billion birr more

The Ethiopian Roads Authority (ERA) submitted a five billion birr additional budget request to the Ministry of Finance and Economic Development (MoFED) for the current budget year. Ministry of Education, which consumes the second largest budget after ERA, is also asking for an additional two billion birr from MoFED.
MoFED has not yet approved ERA’s request, according to ERA officials.
“We are in discussions with relevant MoFED officials on the amount that the ministry will approve.”
ERA that gets the lion’s share of the Federal government’s budget is tasked to undertake and follow cross country road projects. In the past fifteen years, ERA has expanded the country’s road network significantly.
Even though ERA secures the highest budget allocation every year the authority generally never gets the full amount it requests.
In the current fiscal year, the federal government has allocated 18 billion birr for the Road Authority, which is higher than any other federal office and about three billion birr more than last year.
According to sources at ERA, the road projects that are scheduled for this fiscal year are going according to plan but the additional budget allocation is necessary to further undertake projects without any financial shortage.
Recently ERA officials told Capital that the total budget allocation for the road projects in the Growth and Transformation plan (GTP) was not sufficient to meet the target. The budget of 81.1 billion birr for five years will not be sufficient to meet the goals of the Road Sector Development Program (RSDP) IV. Hence the authority has already applied for an additional 20 billion birr for its projects under the GTP plan.
The agencies say they need more money because of the inflation and rising cost of materials. According to the five year program ERA will construct 4,331Km of new roads. Most of the money will come from the federal coffers and external loans.