Ministry of Finance has unveiled a record 1.93 trillion birr (approximately $14.14 billion) draft budget for the 2025/2026 fiscal year, set to begin on July 8, 2025. Presented to the House of Peoples’ Representatives (HPR) the draft budget reflects a significant increase over the previous year’s allocation, signaling Ethiopia’s ambitious economic agenda.
The budget allocates 1.2 trillion birr for recurrent expenditure, 415 billion birr for capital projects, and 315 billion birr for regional state subsidies. An additional 14 billion birr is dedicated to supporting regions in achieving the United Nations Sustainable Development Goals (SDGs).
Finance Minister Ahmed Shide emphasized that the government will maintain strict monetary and fiscal policies to ensure effective budget utilization, stabilize inflation, and promote efficient resource allocation. He noted that the budget is strategically designed to support Ethiopia’s ongoing macroeconomic reforms and align with the country’s 10-year development plan.
RELATED POSTS
The government projects an 8.9% economic growth rate for the 2025/2026 fiscal year, building on recent economic achievements.
Whereas, Economists such as Kebour Ghenna described the budget as “an economic obituary for the public sector,” pointing to its lack of new infrastructure projects, domestic manufacturing stimulus, income tax relief, or meaningful support for the poor.
