The Council of Ministers has approved and forwarded a proposed federal government budget of 2.34 trillion Birr for the 2026/27 (2019EC) budget year to the House of Peoples’ Representatives for approval.
The proposed budget marks an increase of approximately 400 billion Birr compared to the current fiscal year’s 1.93 trillion Birr allocation, reflecting the government’s expanding development and expenditure priorities. The decision was made during the Council’s 56th regular session held today, June 9, 2026.
The Office of the Prime Minister stated that the draft budget was prepared based on targets set in the 2019–2021 Development and Investment Plan (which forms part of Ethiopia’s Ten-Year Perspective Development Plan), as well as the 2019–2023 Medium-Term Macroeconomic and Fiscal Framework.
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This proposed budget is intended to finance regular government operations, capital investment projects, subsidies for regional states, and activities supporting the implementation of the Sustainable Development Goals (SDGs).
The draft budget will now undergo parliamentary review and approval ahead of the commencement of the 2019 Ethiopian fiscal year.
