Tigrai Onlne - July 08, 2014
Ethiopia's parliament approved a 178.6 billion-birr ($9.2 billion) budget for 2014-2015 on Monday, a 15 percent rise from the previous year that will boost spending on education, health and road building.
Strong state intervention has boosted the economy over the past decade and economic growth is set to rise to 8.5 percent in 2014/15 from 8 percent in 2013/14, the International Monetary Fund forecasts.
The IMF has warned that Ethiopia's huge spending on roads, railways and power is suffocating private lending. It says a reduced public expenditure would make room for the private sector to access credit.
The 2014/2015 budget, unanimously endorsed by lawmakers, allocates more than 64 percent of the total amount for development spending.
Of that, Addis Ababa will spend 24.55 billion birr on education, up from 22.48 billion the previous year. Health spending will rise 12 percent to 5.15 billion birr and 29 billion birr will be spent on road building.
Source: Reuters - http://af.reuters.com/article/investingNews/idAFKBN0FD0HV20140708