Addis Ababa — The Ethiopian federal government has presented a draft national budget of 1.93 trillion birr for the 2018 Ethiopian fiscal year, Finance Minister Ahmed Shide announced during a parliamentary session with the House of People’s Representatives.

According to the breakdown of the proposed budget:

• 1.2 trillion birr is allocated for regular (recurrent) expenditures
• 415 billion birr for capital expenditures
• 315 billion birr will support regional states
• 14 billion birr is earmarked for the implementation of sustainable development goals at the regional level

Minister Ahmed stated that 1 trillion birr, or 73% of the proposed budget, will be financed through domestic tax revenues. An additional 236 billion birr is expected from development partners, while the remaining funds will be sourced from project assistance and non-tax revenues.

He also noted that the unadjusted budget deficit is projected at 2.2% of GDP, while the adjusted deficit stands at 1%. Importantly, the minister emphasized that the government plans to cover the deficit not by borrowing directly from the National Bank, but rather through the sale of treasury bills in the domestic financial market.

Minister Ahmed highlighted that the draft budget reflects the government’s commitment to fiscal discipline, aiming to finance expenditures mainly through domestic revenue generation. This approach is expected to help curb inflation and ensure the efficient use of public funds.

The 2018 draft budget is said to be aligned with Ethiopia’s broader macroeconomic reform agenda and the nation’s Ten-Year Development Plan.

Looking ahead, the government projects economic growth of 8.9% for the 2018 fiscal year, according to the finance minister.