Ethiopia’s upper house, House of Federations (HoF), is expected to pass a revised federal subsidy budget allocation for states.

According to Fana Broadcasting Corporation (FBC), the budget allocation is prepared based on the declaration and principles of Federal Democratic Republic of Ethiopia’s (FDRE) Constitution. It is said that the subsidy will enable the states to provide uniform public services for residents.

In addition to this the subsidy will address fiscal imbalance between states and encourage them to improve revenue collection. It will also enable states to fulfill their responsibilities in providing social services for their residents.

Other issue the subsidy will address is, it will cover the additional cost incurred for the construction of infrastructure.

The new formula for the subsidy is also aimed to address the questions of nations and nationalities for fair development and to ensure their rights to benefit from development gains.

Source: Fana Broadcasting Corporation