In the wake of the price ceiling made last Thursday on basic commodities, Ethiopian civil servants to enjoy a salary increment beginning the coming Ethiopian month (Tire), Sufian Ahmed Minister of Finance and Economic Development (MoFED) confirmed to EthiopiaFirst reporter.

President Girma WldeGiorgis, who officially opened the parliament’s annual season last September, has advised the legislature to consider the current cost of living the society has been facing and to make a cost of living adjustment within the year.

The government has recognized the president’s concern but adjusting civil servants salary at that moment was difficult due to the local market actors (players) wrong attitude.

"We already had experienced an inflated market after the government has made a salary increment two years ago," a government official told EthiopiaFirst. Consumers have exposed to a similar inflated market even this year after the president recommended the government to consider a cost of living adjustment while he opened the parliament in September, the official said.

Such wrong attitude of the traders should stop somewhere, the official said relating Prime Minister Meles’s recent discussion with the main traders and the government’s interference in the market by ceiling prices of basic commodities. Know the government has clearly communicated its stiff position to the traders, so it is a right time to the government to adjusting the civil servants salary, the official said.

Minister Sufian also agreed with the official’s explanation and confirmed that the salary adjustment would be practical beginning the coming Ethiopian month. But he is not willing to reveal percentage of the adjustment or the total budget that his ministry set for the salary adjustment.

The government has approved 72 billion birr annual budget for this fiscal year; however there is no budget set for the adjustment.

The government has reserved close to 1.5billion birr for accidental expenses, but it is inadequate for the adjustment, experts said associating the inadequacy of the 2 billion birr budget the government allotted for a salary adjustment two years ago.

The government planned to obtain 15 percent of this year’s budget from foreign partners in foreign currency and calculated its advantage due to the 20 percent devaluation of birr, the expert explained. --EthiopiaFirst