The Council of Ministers submitted a 137.8 billion birr budget proposal to the House of Peoples’ Representatives for approval. The budget proposal for the Ethiopian budget year that starts on July 8, 2012 and ends on July 7, 2013 surpasses last year’s budget by a whopping 20 billion birr.
The house approved a 117.8 billion birr budget with a record deficit of 17 billion birr for the 2011/12 fiscal year. 70 billion birr out of the 117.8 billion birr was covered from money collected by the Ethiopian Revenue and Customs Authority.
The new budget proposal allotted the majority of the total budget, 54.4 billion birr to capital expenditures. It gets a 6.4 billion birr boost when compared to last year’s budget. From the previous fiscal year budget of 117.8 billion birr, the lion’s share of 48 billion birr went to capital expenditures, which is 40.8 percent of the total budget. A little over 31.5 billion came directly from the national treasury. Foreign aid contributed close to 10 billion birr. The rest, which is over 6.5 billion birr, was covered through loans from international creditors.
Federal subsidy for regions will also get the second highest share of the budget for the next fiscal year consuming about 36.5 billion birr which shows an increase of 5.1 billion birr when compared to last year’s budget allocation.
The budget proposal for recurrent expenditure also shows an upward movement. It stands at 26.8 billion birr, up by 3.5 billion birr when compared to last year.
The budget classification allotted 20 billion birr for the execution of the Millennium Development Goals.
The House of Peoples’ Representative this fiscal year approved a four billion birr supplementary budget request. Of the four billion birr supplementary budget approved, three billion went to road projects being carried out by the Ethiopian Roads Authority. The remainder went to the Ministry of Education for completing expansion projects being undertaken at various universities.