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Ethiopia's Top 10 Budget Expenditures For 2022/2023

#Budget Expenditures
article-Ethiopia's Top 10 Budget Expenditures For 2022/2023

For the first time in many years, funding for roads is no longer the largest budgetary line-item, being replaced instead by allocations for debt service (Birr 126bn) and defense (Birr 84bn). Shifts in policy priorities are also reflected in line-items showing substantial increments from last year, most notably for transfers/subsidies (up 9.6x), defense (up 3.8x), and debt service (up 2.8x)

Sector or Ministry Budget (In Billions of Ethiopian Birr)

Source: MoF Budget Document

Sectors with Largest Budget Growth

The graph below provides the budgetary line-items with the largest and smallest growth in Birr billions for the fiscal year 2022-23 compared to 2021-22. The line-items with the largest growth include Transfers and Subsidies, Defense, and Debt, experiencing significant increases of 857%, 282%, and 179% respectively. These line-items show growth multiples ranging from 2.8x to 9.6x compared to the previous year. On the other hand, the line-items with the smallest growth include Justice and Security, Water Resources & Energy, and Prevention and Rehabilitation, with growth percentages ranging from 37% to 46% and growth multiples of 1.4x to 1.8x. The budgetary changes reflect the varying priorities and allocations within the budget for different sectors and areas of expenditure.

Sectors with Largest Budget Growth (In Billions of Ethiopian Birr)

Source: MoF Budget Document

Percentage Change

Source: MoF Budget Document

Sectors with Smallest Budget Growth

This graph highlights the line-items showing the smallest growth in the budget for the fiscal year 2022-23 compared to 2021-22. These line-items include Urban Development and Construction, Agricultural and Rural Development, Culture and Sport, Trade and Industry, Education, Health, and Organs of State. These line-items experienced minimal changes in their budgets, ranging from a decrease of 45% to an increase of 2%, with growth multiples of 0.5x to 1.0x compared to the previous year. The limited growth in these line-items suggests relatively stable allocations or slight adjustments in funding for urban development, agriculture, culture, trade, education, health, and state organs.

Sectors with Smallest Budget Growth (In Billions of Birr)

Source: MoF Budget Document

Percentage Change

Source: MoF Budget Document
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