The Ethiopian parliament on Tuesday approved a record budget of approximately $14.6 billion as an annual federal budget for the 2026/27 fiscal year which will begin on July 8, 2026.
Presenting the budget report to HoPR, chairperson of the Plan, Budget, and Finance Affairs Standing Committee Desalegn Wedaje, said of the total budget, 1.49 trillion birr is set to be generated from tax revenues while 93.7 billion birr is to be covered from loans and grants from development partners.
According to the report, the lion’s share of the budget, about 30 percent, is designated for education, road infrastructure, health, agriculture, energy expansion, and urban development, while 187.3 billion birr, representing 15.1 percent, is allocated as budgetary subsidies to regional states.
This subsidy allocation showed an increase of 28.4 billion birr or 17.8 percent compared to the preceding fiscal year.
The chairperson, however, raised concerns over weaknesses in public financial management, citing findings from the Auditor General that indicate continued violations of financial laws and regulations in some government institutions.
He called on all budgetary institutions to ensure that public funds are used for their intended purposes, improve efficiency in expenditure, and strengthen accountability for irregular budget utilization.
The chairperson also highlighted delays in the implementation of numerous road infrastructure projects, noting that the setbacks have resulted in additional costs and governance challenges. He urged the relevant authorities to improve project execution and ensure the timely payment of compensation to citizens whose land has been acquired for road construction.
Following deliberations, the House of People’s Representatives approved the 2.34 trillion birr as a federal budget by a majority vote which showed an increase of 411.6 billion birr or 21.3 percent over the 2025/26 fiscal year.
MG/as/APA