Ethiopia ministers approve 16.6% increase in annual budget

Next fiscal year's budget focuses on safeguarding national peace, helping displaced people and mending infrastructure that has been damaged, Ahmed's office said in a statement. Ethiopia's fiscal year runs from July 8 to July 7.

Ethiopia's council of ministers have approved a budget for the upcoming 2022/23 fiscal year of 786.6 billion birr ($15 billion), an increase of 16.6% from the previous year, Prime Minister Abiy Ahmed's office said on Friday.

Fighting that erupted in the northern region of Tigray in November 2020, and spilled over into the neighbouring regions of Afar and Amhara last year, has eased since a unilateral ceasefire by the federal government in March. Next fiscal year's budget focuses on safeguarding national peace, helping displaced people and mending infrastructure that has been damaged, Ahmed's office said in a statement.

Ethiopia's fiscal year runs from July 8 to July 7. The draft budget now heads to parliament for approval. The nation of 115 million people has been one of the world's fastest-growing economies over the last 15 years, largely thanks to investment in infrastructure, although growth has slowed to single digits since the onset of the COVID-19 pandemic.

The war between the government and rebellious forces from Tigray has damaged government plans to modernise the economy and deterred some foreign investors. The local currency has plummeted and annual inflation is running at over 36%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)