23 May 2013

Ethiopia's Economy to Expand By 11.3 Percent

Ethiopia's economy is estimated to expand by 11.3 per cent in the 2012/13 budget year. This is according to a 9 month performance reported to the Budget and Finance Affairs Permanent Committee of the Parliament by Sofian Ahmed, Minister of Finance and Economic Development.

He explained to the committee that the performance of the economy this year in agriculture, industry, and service sectors indicates that the economy grows at a pace it did a year before.

Inflation has come down to a single digit at 6.1 per cent and this is down to the government's intervention in the market that commits to importing food commodities while it, at the same time, halt borrowing money from the treasury.

Figures say the last 9 months government revenue performance collects US$ 2.2 billion from export and 77 billion Birr from domestic sources.

According to Sofian, development partners have met 32 billion birr of the pledges they make to provide 64 billion birr finance this budget year. The report talks about a 2.6 billion birr budget deficit, which has been covered through finance tools like treasury bonds.

Our colleague, Seid Alemu reported Chairman of the Permanent Committee, Wana Wego encourages the Ministry to install efficient mechanisms for supervision and control to curb problems happening in the public finance sector.

Besides the Committee demands the Ministry to considerably advance its capacity to improve performance of the government in finance management.

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