Meles: Efforts to reduce inflation register more success than expected

Addis Ababa, April 17, 2012 (Addis Ababa) - Prime Minister Meles Zenawi said government’s efforts to reduce inflation registered more success than expected.

While responding to questions posed by parliamentarians during the 25th regular session of the House of Peoples' Representatives here on Tuesday, Meles said the government has carried out successful activities to control money supply at a national level.



The Premier said budget deficit is said to be one of the lowest in the world as the government would not take loans from the National Bank of Ethiopia (NBE).

He said 3.9 percent drop has been made in reserve money at the Bank.

Meles said global economic instability, significant increase on cost of mines, agricultural products and petroleum contributed to the increase in inflation.

Absence of competition in the market system in particular in the wholesale trade in the country is another factor for growth of inflation.

He said a study is being conducted to organize domestic or foreign investors and create competition in the market system to control inflation.

The Premier said efforts are underway to stabilize price rise through import substitution and also controlling export of domestic products.

In this regard the government has imported eight million quintals wheat as well as sugar and edible oil since last year, he said, adding, there is no shortage in supply of such products at national level rather a distribution problem of the commodities.

Meanwhile, PM Meles said lack of transparency, efficiency and accountability in the civil service sector resulted in dissatisfaction on part of the public.

He said measures are being taken to address problems in the civil service sector .

Meles on the occasion called on the public to rally behind the government in the efforts to expose individuals engaged in corruption.

Concerning teachers, the Premier said the government made salary scale adjustment for teachers but not salary increase and more than 99 per cent of the teachers have accepted with satisfaction the recent salary scale adjustment.

Certification of Occupational Competence, which helps to increase the quality of education, will be implemented in the near future, he said.

Meles said government does not interfere in the affairs of religion and vice versa, however, the government is responsible to safeguard the constitution from religious extremism.

The Premier also said that the information disseminated saying Amhara nationals living in South Ethiopia Peoples' State were displaced was irresponsible and baseless.

To the contrary, he said the Amhara and South Ethiopia Peoples' States have reached an agreement to further continue resettlement in an organized manner.