Ethiopia’s new fiscal year draft budget shows government’s commitment to accelerating economic growth, economist Hussin Ali said.
The economist told ETV Wednesday that the draft budget takes into account comprehensive macroeconomic reforms.
“When a draft budget is issued, it aims to achieve two things,” he emphasized. “One is to consider the macroeconomics and the other to support economic growth.” It is impossible to be effective without either of the two, he argued.
He also mentioned that this large sum of budget has been proposed because there is a certain slowdown in economic growth. Government’s measure requires great commitment, he said.
The economist also noted that it is commendable that the government has said that it will cover its expenses from its revenues in a manner that maintains budget discipline.
He noted that the draft budget was presented after much research and discussion; this will help maintain macroeconomic stability.
Hussein further said that production and productivity should be expanded to increase economic growth.
He mentioned that in this regard, it is necessary to support industries, agriculture, the service sector, and startup businesses.