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Federal Government to Present Additional Budget of 551 Billion Birr
State Minister of Finance, Dr. Eyob Tekaleni, announced that the federal government will present an additional budget of 551 billion birr to the House of Representatives. This budget, which was approved by the government in June 2017, will bring the total budget for the fiscal year to approximately 1.5 trillion birr, marking the first time the federal government’s annual budget will exceed 1 trillion birr.
Breakdown of the Additional Budget
Dr. Eyob detailed the allocation of the additional budget, highlighting the following key areas:
- 240 billion birr will be directed towards “social support,” which includes:
- Safety net programs
- Wage increases for workers
- Subsidies for medicine and oil
- Fuel subsidies
Revenue Adjustments
The revised revenue budget will also be presented to the House of Representatives. The federal government’s revenue projection has been adjusted from 563 billion birr to 851 billion birr, despite there being no tax increases.
Dr. Eyob emphasized, “Our aim is not to raise funds by increasing taxes or tax rates. Instead, we plan to boost revenue by addressing economic distortions. We will ensure strict enforcement to prevent tax evasion. An investor who previously bypassed taxes will now have to comply with the law.”
