Ethiopia: Cabinet Forwards Record 2.34tln Birr Federal Budget Proposal to Parliament

The Council of Ministers has approved a proposal for a 2.34 trillion Birr budget for the 2026/27 fiscal year (EFY 2019) and forwarded it to Parliament for review, according to a statement issued by the Office of the Prime Minister today.

Despite it being nearly half a trillion Birr more than the 1.9 trillion Birr budget lawmakers endorsed for the 2025/26 fiscal year last July, members of the cabinet voted unanimously in favor of the proposal.

Officials say the budget was prepared after assessing the financial resources required to achieve national development objectives, support economic and social transformation programs, and enable government institutions to carry out their mandates.

In dollar terms, the proposed budget (an estimated USD 14.7 billion) is only marginally higher than the federal government's working budget for this year, which equaled roughly USD 14 billion when lawmakers approved it.

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The total federal budget (including a supplementary budget approved in November 2024) for the 2024/25 fiscal year was significantly higher, clocking in at more than USD 21.5 billion.

Nonetheless, if enacted, the 2026/27 budget would mark another significant increase in federal spending as Ethiopia continues implementing economic reforms while seeking to sustain growth and finance development priorities.

Parliament is expected to deliberate and approve a federal budget before the end of the Ethiopian fiscal year early next month.

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