Ethiopia’s Council of Ministers over the weekend approved a record high nearly 2 trillion birr (approximately $35 billion) annual budget for the 2025/2026 Ethiopian fiscal year which will begin on July 8, 2025.
The council has referred the draft budget to the House of People’s Representatives (HoPR) for further scrutiny and deliberation.
The council in a statement said the annual budget aims at Strengthening national security and public order, revitalizing economic productivity across key sectors, investing in infrastructure and capital projects, supporting displaced populations and vulnerable communities, and accelerating progress toward the Sustainable Development Goals (SDGs).
The Council noted that this expansive fiscal package is essential to respond to complex challenges while ensuring that Ethiopia remains on a path toward inclusive and sustainable growth.
The budget comprises recurrent expenditure to fund essential public services such as education, healthcare, and public administration and capital expenditure which will be spent for infrastructure progress including for roads construction, energy development and water, and public works.
Unlike other times, the government blocked grants and subsidies to regional states with the view to reinforcing the country’s federal structure and supporting regionally-led development efforts.
It offers a particular attention to special programs involving job creation, youth empowerment, and technology infrastructure
Moreover, the Council of Ministers advised the House to explore additional funding sources, such as concessional loans and external partnerships, to ensure the successful implementation of high-impact national projects.
The Ethiopian House of Peoples’ Representatives (HoPR), the lower house of parliament last year approved 971.2 billion Ethiopian birr (about 16.83 billion U.S. dollars).
MG/abj/APA