Prime Minister’s Report:
War time economy has various difficulties. Among other things, donors and lenders withhold funds during this time. The work done on tourism and agriculture sectors are what gave us wins during this period.
The government had planned for an income 185.8 billion ETB during the first half year of 2014 but achieved 92% of the plan at 171.3 billion ETB. One of the reasons being tax revenue has not been collected in some places due to war. The 185.8 billion ETB income is however 15% higher from the last year’s half year figures.
The expenditure incurred during the first half year of 2014 was 297 billion ETB that is a 39% increment from last year’s figures of the same period. There is a budget deficit of 111.2 billion ETB.
The PM also noted that exports increased by 25% mainly due to the increase in export of
⁃ Agricultural products (coffee, chat , flowers and oilseeds) which saw an increase of 21 %
⁃ Service which saw an increase of 27%
⁃ Industry saw an increase of 25 %
Export for H1 totaled almost 2 billion dollars.
However, import for H1 also increased by 25 % – mainly due to the increase in import of fuel and fertilizers.
The prime minister also noted that import substitution work amounting to 1 billion dollars was done on food items, pharmaceuticals, textile and shoes for soldiers and students, diaper, inputs for cement production and ceramics.
