ADDIS ABABA, July 5 (Xinhua) -- The Ethiopian House of Peoples' Representatives (HoPR), the lower house of parliament, approved a record budget of 971.2 billion Ethiopian birrs (about 16.83 billion U.S. dollars) for the 2024/2025 Ethiopian fiscal year, commencing on July 8.
The new budget represents a 21.1 percent increase compared to the 2023/2024 fiscal year's budget of 801.6 billion birrs.
Of the total budget, 451.3 billion birrs is allocated for regular expenditures, 283.2 billion birrs for capital projects, and 236.7 billion birrs for regional state subsidies.
From the subsidies allocated to regional states, 14 billion birrs will fund projects under the United Nations Sustainable Development Goals.
The budget was developed based on the country's 10-year Development Plan, the next five years' medium-term macroeconomic and fiscal frameworks, the government's financial capacity, and anticipated revenues and expenses.
Addressing the HoPR, Prime Minister Abiy Ahmed highlighted Ethiopia's economic resilience amid global challenges. He said that inflation dropped to 23 percent this year from 30 percent the previous year.
"In an effort to curb inflation, the government intends to limit borrowing from the National Bank of Ethiopia," Abiy said, adding that 139.3 billion birrs have been allocated for debt repayment. ■
