Ethiopia’s Ministry of Finance and Economic Cooperation faced 14.4 billion Birr budget deficit in the first six months of the current fiscal year. The Ministry generated 80.5 billion Birr income but its expenditure was 95 billion Birr.

The six performance show there is a 7.7 percent increment in tax revenue when compared to last year’s performance. However, this was lower than what was planed.

On the other hand, the Federal Government collected 1.5 billion USD from international development partners in the same period. 86 percent of this money came as loan while the difference was donated. China contributed 38 percent of the country’s foreign cash flow.

In addition to this the performance report noted Ethiopia should employ a stringent fiscal policy in order to control inflation.

Source: Addis Fortune