A Near Trillion Birr Budget Bill Makes its Way to Parliament

Jun 11 , 2024


[ssba-buttons]

A near one trillion Birr budget was proposed by the Council of Ministers for the next fiscal year, currently under review by lawmakers. The Standing Committee for Plan, Budget and Finance Affairs will review the draft budget with relevant stakeholders before pushing it for voting before the general assembly. Ahmed Shide, minister of Finance and his deputy Eyob Tekalign (PhD) have been deliberating on the budget hearings for the past months, carefully reviewing the proposals from the 170 federal institutions in the country. Budget ceilings are strictly implemented as the government looks to apply contractionary fiscal policies amid high debt servicing costs and a global funding squeeze. Last year, the budget of 801.6 billion Br was distinctly austere, with a 1.96pc growth from the previous year through major cutbacks on capital expenditure of 6.7pc devoid of new large projects nationwide. Major attention was given to debt servicing costs, which took up nearly 20pc of the whole budget at 159 billion Br while being highly reliant on domestic revenue mobilisation. As Ethiopia looks to get a debt restructuring arrangement facilitated through the G-20 Common Framework mechanism contingent on a reform program proposed by the International Monetary Fund (IMF), fiscal consolidation is an important theme in the budget.


Radar

Korenti, Agelegel Microfinance Ink EV Financing Deal

Korenti Auto Trading PLC has signed a strategic agreement with Agelegel Microfinance to provide accessible financing options for electric vehicle (EV) buyers. The partnership seeks to ease EV ownership by offering fair pricing and loan packages with affordable rates. The initiative supports Ethiopia's push for clean transport and aligns with national sustainability goals. Korenti's managing director said the move reflects the company's commitment to expanding electric mobility. Customers can now...


Radar

NBE Leads Week-Long Bank Supervision Application Forum

The National Bank of Ethiopia (NBE) is hosting a week-long Bank Supervision Application (BSA) User Group meeting that began on July 7, 2025. The BSA system, developed by a pan-African consortium of central banks including the NBE, automates supervisory work for financial regulators. NBE will take over the rotating BSA chairmanship in September. Opening the session, Frezer Ayalew, Director of Bank Supervision, stressed the need for modern tools to handle growing regulatory demands amid cyberse...


Radar

Six Fuel Companies Banned, Seven Warned, Authority Noted Illicit Activity

The Ethiopian Petroleum & Energy Authority has taken disciplinary action against 13 fuel distribution companies for illegally trading 2.8 million litres of fuel outside the digital system in the past two months. Six firms face a one-month suspension from the fuel import and trading market, while seven others received final warnings and must rectify their operations within a month. Director General Destawe Mekwanant (PhD) said the companies failed to monitor fuel stations and ensure proper...