Ethiopia's 2022/23 budget allocation should focus on poverty reduction.

The parliament stated this on 11th regular session of the 6th House of Peoples' Representatives when the Ministry of Finance presented next year's draft budget.

The house urged the country's general budget should be allocated fairly and focus on poverty reduction and areas affected by man-made and natural disasters.

The House indicated that appropriate development budgets should be allocated for the completion of major development projects on time. House members also suggested that budgets be used in a cost-effective manner to achieve a resource allocation that reflects expenditure policy priorities.

House members say peace and security will be ensured when there is efficient budget execution only when citizens job opportunities are created for the youth. It is therefore crucial to consider food security an indispensable link in the process of achieving peace.

They asked What can the Ministry do in terms of the next budget for living conditions and poverty reduction?

On the other hand, they asked How can the budget allocation be fair without national housing and census?

The Minister of Finance, H.E Ahmed Shide, in response to questions and comments from the House; said the next budget will focus on fairness and poverty reduction.

He said the government is paying special attention to the war-torn regions and drought-stricken areas in the north of the country. He said 20 billion birr budget will be allocated next budget year for those areas.

Efforts are underway to rehabilitate people affected by the war and drought, Minister Ahmed Shide said. He also mentioned that a $ 300 million loan agreement has been reached with the World Bank.

On the other hand, the budget allocation is given special attention to the Defense Forces, he said.

In the next year, the federal government's total revenue, including foreign aid, is projected to reach 477.8 billion birr. According to Minister Ahmed Shide, 92% of the revenue collected from the country will be covered. He said the country's total expenditure budget is 786.6 billion birr.

The minister did not attach it; Despite the negative impact of the country's internal and external pressures on the economy; He told the House that better results have been achieved in development projects and in the agricultural sector.

He said government should purchased fertilizers in advance and initiatives to stake out a more sustainable way of growing crops in plentiful to ensure that there is no shortage of fertilizers.

Finally, the House discussed next year's draft budget presented by the Ministry of Finance as Proclamation no- 8/2022 referred to the House Standing Committee on Planning, Budget and Finance for a detailed review.

Translated by Yared Eshetu