Ethiopia’s government agrees to spend an extra $4.8 billion in 2024/25

A broadcast from the senate showed that on Tuesday, lawmakers in Ethiopia agreed to the government’s plan to spend an extra 581.98 billion birr ($4.8 billion) for the 2024–25 fiscal year.

The extra money that was approved by the cabinet last week adds to the 971.2 billion birr that was already planned to be spent in 2024/25. This is a 21% rise from the previous year. The fiscal year for Ethiopia starts on July 8 and ends on July 7.

Finance Minister Ahmed Shide told lawmakers that some of the extra money would be used to lower the prices of medicine, oil, fuel, and fertilizer.

The country in East Africa is recovering from a number of economic shocks, such as the COVID-19 pandemic, a terrible two-year war in the northern Tigray area, and severe weather events.

It quickly got a $3.4 billion, four-year scheme from the International Monetary Fund after letting its currency float on July 29. This move made it possible for a long-awaited settlement of debt.

One dollar is equal to 122.6389 birr.