Ethiopia Approves 581 Billion Birr Supplementary Budget for 2024/25













In a significant session, Ethiopia’s Council of Ministers convened for its 40th regular meeting, deliberating on a range of pivotal issues that aim to shape the country’s socio-economic and environmental landscape. Here’s a breakdown of the key discussions and decisions:

1. Adoption of Medium-Term Macroeconomic and Fiscal Framework (2017-2021)

The council approved a comprehensive macroeconomic and fiscal framework to serve as a blueprint for the second phase of Ethiopia’s indigenous economic reforms. This framework aligns with the country’s fiscal policy adjustments and prepares for the 2017 federal supplementary budget. Following detailed discussions, the council unanimously endorsed the framework, marking it as a cornerstone for Ethiopia’s continued growth and reform.

2. Approval of Federal Supplementary Budget

To support the implementation of the revised medium-term framework, the council reviewed and approved a supplementary budget of 581.98 billion Birr. This allocation addresses both regular expenses and cost adjustments while reflecting the government’s financial capacity and projected revenues. The council decided to forward the budget proposal to the House of Representatives for final approval, signaling its commitment to fiscal responsibility and economic resilience.

3. Establishment of the Institute of Certified Accountants in Ethiopia

Recognizing the critical role of professional accountants in enhancing financial reporting standards, the council discussed a draft decree to establish the Institute of Certified Accountants in Ethiopia. The institute aims to bolster the quality of financial management in both public and private sectors. After extensive deliberations, the council resolved to forward the draft to the House of People’s Representatives, envisioning a future of transparency and professionalism in financial practices.

4. Tackling Solid Waste Management and Single-Use Plastics

The council addressed the pressing issue of solid waste management, presenting a bill to create a robust legal framework for sustainable waste collection, transportation, and disposal. Aimed at curbing environmental degradation, the bill also includes a ban on single-use plastics. This initiative ties into Ethiopia’s Green Legacy Program, reinforcing the country’s commitment to environmental health and urban beautification. The council approved the bill and moved it forward to the House of Representatives.

5. Amendments to the National Reform Commission Regulation

To empower the National Reform Commission in fulfilling its mandate, the council approved amendments to its foundational regulation. The updated rules will enable the commission to operate more effectively and address its legal responsibilities. The council decreed that the amendments be implemented immediately upon publication in the Federal Negarit Gazette.

6. Bill on the Development and Protection of Water Bodies

Acknowledging the environmental and economic significance of Ethiopia’s water bodies, the council endorsed a bill to safeguard and sustainably develop water ecosystems. This measure aims to prevent shoreline degradation, enhance ecosystem services, and create economic opportunities for local communities. The council unanimously agreed to submit the bill to the House of Representatives for further action.

7. Establishment of the High Council of Basins

The council concluded by addressing the establishment of a High Council of Basins to oversee integrated water resource management. The council emphasized the need for a strategic, collaborative approach to utilizing Ethiopia’s surface and underground water resources sustainably. The proposed body will provide leadership in managing water resources at the basin level, ensuring equitable and efficient use. The bill was unanimously approved to proceed to the House of People’s Representatives.