Sunday, September 24, 2023
NewsDeclining deficit marks next year's budget proposal

Declining deficit marks next year’s budget proposal

The Ministry of Finance has projected a budget deficit of 281 billion Birr for the next fiscal year, as lawmakers review the proposed 801 billion Birr budget.

According to the Minister of Finance Ahmed Shide, around 242 billion Birr of the deficit will be financed through issuing treasury bills and borrowing from the central bank. The remaining 39 billion Birr will come from external lenders.

The deficit for next year’s budget is much lower than anticipated at the beginning of the current fiscal year, with the overall budget expected to grow by only two percent.

Presenting the budget proposal to Parliament, Minister Ahmed Shide said treasury bills – considered less inflationary debt instruments – will mainly be used to finance next year’s deficit.

The Parliament Standing Committee for Plan, Budget and Finance is expected to conduct further discussions before putting the budget bill to a vote in Parliament.

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