The Ethiopian government has approved a new budget for the upcoming fiscal year, which amounts to nearly 2 trillion birr (approximately $15 billion).

This represents a 31% increase from the budget of the previous year. According to the government, the additional funds will be used to enhance productivity in critical sectors such as agriculture, assist individuals who have been impacted by disasters, and promote security.

The economy of the nation is currently experiencing significant transformations in order to stabilize it.
The birr, its currency, was recently floated, thereby enabling market forces to determine its value. Ethiopia is also in the process of restructuring its debt and collaborating closely with the International Monetary Fund (IMF).

The third round of a $3.4 billion loan agreement with Ethiopia was approved by the IMF last week.
This implies that the nation will receive additional assistance in its efforts to address inflation and stabilize its economy. The revised budget is a component of this overarching strategy.

The government contends that it is committed to prudent spending and ensuring that funds are allocated to initiatives that enhance the quality of life.

This encompasses the construction of infrastructure, the assistance of producers, and the assistance of families that have been impacted by droughts and conflicts.

The new budget is anticipated to bring about genuine change in Ethiopia. Many are eagerly anticipating the government’s ability to transform its strategies into tangible outcomes, as the economy continues to recover from previous crises.