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Ethiopia to boost defence budget by 50 mln dlrs

Food not guns
by Staff Writers
 Addis Ababa (AFP) June 10, 2008
 Ethiopia is to bolster its defence budget by 50 million dollars "for stability reasons" amid tension in the Horn of Africa region, according to a draft budget presented to parliament Tuesday by Finance Minister Sufian Ahmed.

"The defence budget for the next fiscal year (beginning in July) will be raised to four billion birr (400 million dollars) up from 3.5 billion (350 million dollars) last year," Sufian said.

"We believe that this amount is proportional."

The budget is to be approved by the end of the month.

Ethiopia is involved in a tense standoff with Eritrea over a border row that has remained unresolved despite the signing of a peace deal that ended their two-year war in 2000.

Its troops are also battling insurgents in Somalia after entering in late 2006 to bolster Somalia's beleaguered transitional government, in a move supported by the United States.

"We have raised the amount for stability reasons as we are based in the Horn of Africa region," the finance minister said. "We can only sustain economic development when there is stability in our region."

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