ETHIOPIA: House approves 117.8b Birr federal gov’t budget for 2011-12

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The House of Peoples Representatives unanimously approved on Tuesday a 117.8 billion Birr budget for the 2011/12 fiscal year.The amount of budget allocated for 2011/12 exceeds that of last year by 39 per cent, available data indicates. Some 76.2 per cent of the stated budget will be covered from local sources and the balance from foreign sources.

Some 71 per cent of the stated sum of budget will go to road, education, food security, health, capacity building and rural electrification programs, which were given priorities according to the five-year Growth and Transformation Plan.

The federal government has allocated a 15 billion Birr budgetary subsidy to regions to help them achieve the Millennium Development Goals (MDGs).

Briefing members of the House about the budget, Prime Minister Meles Zenawi said the budget was formulated by taking into consideration the exiting price hike and other important things.



He said the budget deficit would be covered in the form of bond sale. Meles said the budget gives special attention to poverty-reduction schemes. He said efforts would be launched to contain inflation and reduce it to the level of 3.9 per cent.

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