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Ministry of Finance launches budget hearing sessions for the upcoming fiscal year

Throughout the duration of the budget hearing sessions, scheduled until 17 May, 2024, more than 160 federal budgetary institutions are anticipated to submit their budget requests for the forthcoming fiscal year (Photo: Ministry of Finance/Facebook)

Addis Abeba – Late last week, Finance Ministry officials, led by Minister Ahmed Shide and State Minister Eyob Tekalign, kicked off budget hearing sessions for the next fiscal year.

During these sessions, government institutions are expected to submit their budget proposals and defend them before adjustments by the Ministry of Finance. Once reviewed, the budget bill proceeds to the Council of Ministers and then to Parliament for approval.

Officials from the Ministry of Finance emphasize that the primary criteria for evaluating recurrent budget requests will include cost savings and waste reduction practices. Moreover, priority will be accorded to existing projects in the allocation of capital budgets.

Although officials have confirmed that no new projects are scheduled to receive financing in the forthcoming fiscal year (2024/25), exceptions may be made for highly urgent projects.

However, such considerations will only occur under special circumstances, contingent upon the submission of a project study document and the review of supporting evidence by the Ministry of Planning and Development.

The prioritization of existing projects over new ones during budget allocation is not a new practice.

When Minister Ahmed presented the budget proposal for the ongoing fiscal year before the parliament in June 2023, he informed lawmakers that the proposed budget does not account for the initiation of new projects to be funded by the federal government.

For the current fiscal year, the parliament approved a budget of 801 billion birr. Out of this total, 203.9 billion birr is designated for capital expenses, leaving a recurrent budget allocation of 369.6 billion birr. Additionally, 14 billion birr has been allocated for the advancement of sustainable development goals, while 214.07 billion birr was allotted for regional subsidies.

During the first session held on 02 May, 2024, the Ministries of Labor and Skills, Revenues, and Tourism, Culture, and Sport presented their budgetary requests. Ministry experts provided guidance, directing adjustments based on allocated budget ceilings.

Over 160 federal budgetary institutions are expected to participate in similar sessions until 17 May, 2024, to present their budget requests for the upcoming fiscal year. AS

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