Addis Ababa, July 1, 2010 (Addis Ababa) - Prime Minister Meles Zenawi said the allocation of the 2003 EC federal government budget is made by taking into consideration the 10.4 per cent economic growth in which Ethiopia anticipates to register in the coming five years.

While responding to questions raised by the members of the House of the Peoples Representatives, which approved the 2003 EC federal budget in its regular session here on Thursday that the new parliament may revise and request for additional budget.

Meles said the allocation of budget is mainly intended to reduce poverty.

He said Ethiopia is the only country in Africa which allocates the lion's share of its budget for poverty reduction activities. No country in Africa allots 70 per cent of its budget to poverty reduction activities, he added.

As it is known 20 per cent of the budget should be allocated to the service sector, but the government has allots 20 per cent of the budget to education sector alone by giving attention to it, Meles said.

Pointing out the budget allocation is flawless; Meles said Ethiopia is a country where there is equitable resources distribution in Africa.

He said agriculture would continue to lead the economic development of the nation in the next five years. However, he said, the industrial sector development would be faster than that of the service and agriculture sectors.

According to the Prime Minister, 20 per cent of the federal budget comes from foreign aid and loan. This is included in the budget since it was confirmed

Source: ENA