Ethiopia: Parliament Endorses 1.9 Trillion Birr Budget Proposal

3 July 2025
The Reporter (Addis Ababa)
By Staff Reporter

Parliament on Thursday unanimously endorsed the record 1.93 trillion Birr budget proposed by officials at the Ministry of Finance for the 2025/26 fiscal year.

While the figure represents Ethiopia's largest-ever federal budget, in real terms it reflects the substantial depreciation the Birr has undergone over the past 11 months in connection to ongoing macroeconomic reforms.

Close to a third of the budget is earmarked for servicing Ethiopia's foreign debt, fueling criticism over claims of it being a pro-poor budgetary allocation.

The average Ethiopian has been forced to tighten their purse strings due to the austerity being experienced as a result of the IMF-backed reforms.

- Advertisement - The International Monetary Fund just greenlit a USD 262 million disbursement to Ethiopia following the third review of the Horn of Africa country's $3.4 billion loan program.

"The decision signals confidence in the nation's economic reform efforts and comes amid crucial progress on restructuring billions in debt," reads an IMF press release.

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