The House of People's Representatives of Ethiopia has unanimously approved the proposed budget for the 2018 Ethiopian calendar year, amounting to an impressive 1.93 trillion birr.
This decision was made during the 42nd regular session of the 4th year of the 6th House, held in the presence of Prime Minister Dr. Abiy Ahmed, demonstrating a united front in the government’s ongoing efforts to foster economic stability and growth.
The approved budget outlines an ambitious allocation of funds aimed at enhancing various sectors, with a particular focus on development and societal welfare. Specifically, of the total budget, 1.2 trillion birr is designated for regular government expenditures, while a substantial 415 billion birr will be invested in cinema and cultural activities. This substantial allocation underscores the government’s commitment to promoting arts and culture as integral components of national identity and cohesion.
In addition, the support for regional governments has been earmarked at 315 billion birr, which is pivotal in ensuring that local administrations can effectively deliver services and implement development projects tailored to their specific needs. Another 14 billion birr is allocated specifically for regional development support, reinforcing the emphasis on decentralised governance and community empowerment.
This budget represents a remarkable growth of 34.4 per cent compared to the prior fiscal year, reflecting the government’s drive to enhance revenue generation and economic reform. The increase is attributed to various strategic initiatives aimed at fortifying the national revenue system, which includes the introduction of new tax regulations intended to expand the tax base and improve compliance. Already, domestic revenue has shown promising signs of growth, projected to stabilise with an increase of more than 80 per cent as the government pivots towards a more sustainable fiscal model.
During the session, Prime Minister Abiy Ahmed highlighted the importance of the budget in the broader context of macroeconomic reforms and the ongoing transition towards sustainable economic practices.
He stressed the need for a balanced approach that encompasses both short-term relief for vulnerable populations and long-term strategies designed to stimulate economic growth. This includes negotiating debt restructuring with international creditors, which is crucial for freeing up resources that can be diverted to essential services and development projects.
The approval of the 2018 budget not only reflects the government's commitment to ongoing development projects but also represents a response to the public’s demand for transparency and accountability in financial governance. As part of this commitment, the government intends to closely monitor the implementation of this budget and ensure that resources are utilised effectively and responsibly.
Moreover, this comprehensive budget proposal will play a critical role in addressing pressing issues such as poverty alleviation, infrastructure development, and job creation, which are essential for promoting national stability and growth. The government aims to implement a series of social assistance programs designed to assist low-income families and stimulate local economies, ensuring that the benefits of economic growth are shared broadly across all segments of society.
As Ethiopia navigates through this transformative period, the 2018 budget stands as a testament to the government’s resolve to tackle systemic challenges and propel the nation towards a prosperous future. The unanimous approval by the House of People's Representatives signifies a collective commitment among lawmakers to collaborate on initiatives that foster both economic growth and social progress.
With this budget in place, the government is poised to make significant strides in its development agenda, one that prioritises the well-being of all Ethiopians while embracing a forward-looking vision for the country's economic landscape. As implementation begins, stakeholders from all sectors will be watching closely, hopeful that the ambitious plans laid out will translate into tangible improvements in the lives of citizens throughout Ethiopia, according to the PM.