View From Arada | Feb 20,2021
May 11 , 2019
By TEMESGEN MULUGETA ( FORTUNE STAFF WRITER )
The Ministry of Finance established a 12-member public finance management advisory council that will facilitate government finance administration.
The Council includes two members from Addis Abeba University, five experts from the private finance sector, one NGO representative, a central bank official and two civil servants from the Ministry, to which it will be accountable.
Established two months ago and chaired by Eyob Tekalign (PhD), state minister for Finance, the Council has three working groups: accounting and reporting International Financial Reporting Standards (IFRS); internal audits; and modernisation of the finance sector.
This comes as the country’s external debt climbed to almost a third of the gross domestic product (GDP) in the past fiscal year, compared to 18pc six years ago. With public and private debt standing at 61pc of GDP, the International Monetary Fund stresses that while liquidity risks are elevated, the public debt remains unsustainable.
In the first half of the current fiscal year, disbursement from multilateral institutions stood at 40.6 billion Br, more than double the amount in the previous fiscal year; and 17 billion Br was disbursed by bilateral partners, a 42pc drop from the same period a year ago.
Close to half of the disbursements were in the form of concessional loans that bear low-interest rates and long repayment periods.
It also comes at a time when the Ministry of Finance is undertaking reforms to address gaps in domestic revenue mobilisation. This includes a tax reform plan to revise excise taxes to generate 20 billion Br to 30 billion Br more a year, as well as the development of an electronic procurement system to make procurement more efficient and transparent.
The Ministry is exercising a more prudent fiscal policy following a rise in debt, disappointing government revenue and escalating inflation. Last fiscal year’s federal budget stood at 346.9 billion Br, five percent lower than that of the previous year in dollar terms.
An expert in the field, Eyob Tesfaye (PhD), believes that the establishment of the advisory council will make a positive change on the macroeconomy and will build accountability.
Besides minimising the expenditure of the government, it will improve budget quality and help bring economic growth to the country, according to the expert, a veteran macroeconomist currently serving as a member of the Commercial Bank of Ethiopia's board.
“The old habits of the finance sector will be the main challenge during the implementation period, but the establishment of the council shows the attention the sector is getting,” he said.
PUBLISHED ON
May 11,2019 [ VOL
20 , NO
993]
View From Arada | Feb 20,2021
Radar | Mar 11,2024
Fortune News | Aug 16,2020
Fortune News | Jul 12,2021
Fortune News | May 14,2022
Radar | Jun 01,2019
Viewpoints | Apr 25,2020
Radar | Oct 02,2023
Commentaries | Jun 26,2021
Fortune News | Aug 17,2019
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...
Apr 6 , 2024
In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (C...
Mar 30 , 2024
Ethiopian authorities find themselves at a crossroads in the shadow of a global econo...
Loading your updates...