The Council of Ministers, in its third regular session today, discussed various issues and passed a resolution.
1. The House first discussed the Federal Government’s Extra Budget and Expenditure Amendment Proclamation in the 2014 Ethiopian budget year, and the House of Peoples’ Representatives of the Federal Democratic Republic of Ethiopia (FDRE) approved a total budget of Birr 561.7 billion. Despite the variability of the macroeconomic conditions under consideration for the preparation of the budget at the time, the need for additional budgets and budget deficits to be implemented due to the need for additional expenditures due to the ongoing war in our country and the inability of the economy to meet the current demand for payments. Recommended by the FDRE Ministry of Finance. The House, after deliberating on the proposed agenda, decided to refer it to the House of Peoples’ Representatives for approval.
2. Next, the House discussed the decision to adjust the price of petroleum products and the implementation of targeted subsidies. Oil plays a key role in the country’s economic and social development and is closely linked to the living conditions of the people. However, taking into account the current macroeconomic situation of the country and the living standards of the society, the domestic retail price of domestic oil is being reviewed and revised from time to time to the consumer. Thus, in order to address significant issues, the Fuel Transformation Reform is being planned at the national level, and a mechanism has been developed to implement the proposed recommendations by gradually reviewing the price adjustment of selected non-policy fuel subsidies from selected vehicles. The resolution is expected to take effect six months after it is approved by the Council of Ministers.
3. The next item on the agenda was the Petroleum Price Pricing and Profit Margin Process, which is currently in the process of being approved by the Council of Ministers for the past 25 years. Therefore, in order to implement the policy direction given by the government in a robust and effective manner, it is necessary to examine and correct the gaps in the existing system. Therefore, the resolution was prepared and presented to the House due to the need to improve the system that has been in place for the past 25 years and to establish a consistent and transparent system.
4. Agreements that the Ministry of Mines and Petroleum has entered into agreements with eight companies on coal mining are another agenda item. Efficient production and enrichment of coal mines in various parts of Ethiopia will be carried out by eight companies and according to the project plan, the companies are expected to produce products that can meet national demand within a year. The agreements are presented to the House, including the contribution of the projects to the government and the local people, as well as other details. After deliberating on the proposed agreement, the council decided to sign the agreements with the FDRE Ministry of Mines and Petroleum.
5. The council then discussed the draft Community Health Insurance Proclamation, which covers the cost of pre-existing low-cost health services and alleviates high costs and ensures equitable access to health care for all. As a result, there was no clear legal framework for governing the system in the past, and there was a need to unify the legal frameworks used at the federal and state levels, to ensure a clear division of labor between the federal and state executive bodies in the community-based health insurance system. The draft proclamation has been prepared for its use. The House discussed the draft proclamation and referred it to the House of Representatives for approval.
6. Finally, the Council discussed the draft regulation issued by the Council of Ministers to determine the purpose and function of Ethiopian Investment Holdings. The regulation was presented to the Council of Ministers with the view that Ethiopian Investment Holdings will be a strategic development and investment tool that will greatly enhance the country’s economic growth and competitiveness by mobilizing a large number of government assets in one country and creating effective corporate governance. . The council discussed the bill extensively and decided to implement it from the day it was published in the Negarit newspaper.