[ad_1]
The Ethiopian Ministry of Finance announced that it has raised $ 769.9 million from exports in the first quarter of the Ethiopian fiscal year, which started on July 7, 2020. The amount has shown an increase of $ 46.9 million compared to the same quarter last year.
Eyob Tekaligh, Minister of State for Finance, made the announcement while presenting a three-month performance report of his ministry to Parliament’s Standing Committee on Revenue, Budget and Finance Affairs. Mr. Eyob noted that Ethiopia’s export performance has shown growth for the past two consecutive years.
While Ethiopia’s economy has been growing at a double-digit growth rate for several years, it has also achieved growth of 6.1 percent in the 2019/20 fiscal year, despite the challenges posed by the pandemic of coronavirus. The minister of state attributed the ongoing local economic reform and fiscal policy adjustment as significant contributors to growth specifically in exports. The reform agenda has created an environment conducive to improving tax collection and reviving export earnings, he said.
The Federal Government of Ethiopia In fiscal year 2020/21, the federal government plans to raise 325.2 billion Birr from national revenue and direct budget support from international organizations. Approximately 75.1 billion Birr was collected from tax and non-tax revenue in the last three months of the current budget year.
Mr. Eyob highlighted excise duties, customs duties and tax incentives as factors that led to an increase in tax revenue. Reduced tax incentives from seven percent of last year’s GDP to five percent have helped save 5.4 billion birr, the report said.
Yayesh Tesfayehun, Chairperson of the Standing Committee on Revenue, Budget and Finance Affairs, said it is encouraging to see Ethiopia’s economy grow despite the challenges of COVID-19, urged the ministry to seek a resolution to the high rate of inflation, which he said is “hitting” the middle class.
However, the middle income class in the country has been affected by inflation, he noted, urging the ministry to work with stakeholders to alleviate the problem.
Ethiopia’s economy is expected to grow 8.5 percent during the current fiscal year.
https://t.me/News2merkato
Source: ENA
