The Federal Auditor General’s Office has flagged a troubling buildup ETB of 32.9 billion  in uncollected receivables across federal government institutions, raising serious questions about financial discipline and accountability in public spending. The report, covering the 2024 Ethiopian budget year, was presented to the House of People’s Representatives by Auditor General Meseret Damte, who expressed concern over the growing delays in settling government advances and receivables.

According to the report, the arrears span 137 federal institutions and 20 revenue and customs branches, with large sums remaining unpaid for years. While some of the receivables have been pending for just under a year, a significant portion dates back between one to five years, and even over a decade in some cases. The accumulation reflects systemic weaknesses in financial tracking and enforcement across several sectors.

Institutions such as the Ministries of Health, Education, and Irrigation and Lowland Areas, along with Wachemo University, were identified as among those holding the largest share of unsettled accounts. The Auditor General noted that failure to clear these balances promptly not only risks waste of public funds but also undermines transparency and effective budget execution.

She emphasized that under existing financial regulations, including Council of Ministers Regulation No. 190/2000, federal institutions are required to settle advances related to operational expenses, travel, and transport within seven days of task completion. The current pattern of delayed settlements, she warned, violates these rules and erodes public confidence in government financial management.

The Ministry of Transport and Logistics of Ethiopia has held high-level bilateral discussions with a delegation from the Republic of Austria, focusing on enhancing investment cooperation in the transport and logistics sector, more in aviation.

The meeting was led by Bareo Hassan, State Minister of Transport and Logistics, and Andreas Richard, State Minister for Finance of Austria. During the discussion, State Minister Bareo highlighted Ethiopia’s rapid economic growth and the substantial progress being made in the transport and logistics sector. He emphasized that the Government of Ethiopia offers a conducive policy environment and robust institutional support for foreign investors interested in these sectors.

In response, Minister Andreas Richard underscored Austria’s extensive experience in the field of aviation and expressed strong interest in forging partnerships within Ethiopia’s growing air transport industry. He noted that Austria is prepared to take concrete steps toward cooperation, including the signing of a Memorandum of Understanding in the near future to facilitate mutual investment efforts.

The delegation was further briefed by Kedilmagist Ibrahim, Advisor to the Minister, on investment opportunities and the enabling legal frameworks in key areas such as port development, railway infrastructure, public transportation, the Addis Ababa Bus Rapid Transit (BRT) system, and aviation services.

Austria possesses strong aviation capabilities marked by a modern, sustainability-focused flag carrier (Austrian Airlines), advanced maintenance innovation (including drone-based aircraft inspections), and a dynamic aerospace manufacturing sector led by firms like Diamond Aircraft and FACC AG. The country is renowned for producing light aircraft, certified engines, and high-tech composite components for global export. Backed by its national Aviation Strategy 2040+, Austria is committed to digitalization, environmental sustainability, and aviation R\&D, making it a credible and strategic partner for Ethiopia working on the aviation growth and modernization.

The Ministry of Trade and Regional Integration has issued a statement clarifying recent misinformation suggesting that new taxes have been imposed on fuel sales. While the Ministry insists that no new taxes or subsidies are currently being applied, a recent report by Sheger 102.1FM reveals that the government’s 2025/2026 draft budget plans to introduce a 15 percent value-added tax (VAT) on fuel products starting July 2025.

This clarification comes amid growing public anxiety and widespread rumors circulating on social media, which have contributed to unnecessary panic and long queues at gas stations across the country. The Ministry urges the public to rely on verified information and assures that fuel supply remains stable and sufficient.

Ethiopia has been gradually reducing its domestic fuel subsidies since June 2022, a process designed to align local fuel prices with global market rates. This phase-out was initially targeted to conclude by June 2023 but was extended due to macroeconomic reforms, including a significant adjustment in the foreign exchange rate, which pushed domestic fuel prices upward.

To mitigate the impact on vulnerable populations, the government introduced a targeted subsidy package in July 2024, focusing support on low-income households. Despite these efforts, the wide price gap between Ethiopian fuel prices and those of neighboring countries has fueled smuggling and illegal trade, prompting the government to accelerate subsidy removal.

Subsidies on gasoline and jet fuel were removed starting May 9, 2025, with the de-subsidization of white diesel and other petroleum products following on June 4, 2025. Since then, all fuel prices have been fully determined by international oil market dynamics.

However, the government’s plan to impose a 15 percent VAT on fuel products from July 2025, as outlined in the draft budget, is expected to place additional financial pressure on consumers already facing rising living costs. The VAT is projected to generate over ETB 3 billion in revenue for the federal government, alongside additional VAT revenues from other basic commodities such as sugar and salt.

The Ministry acknowledges the challenges posed by these reforms but emphasizes their necessity in improving fiscal sustainability and reducing market distortions. It also reiterates its commitment to protecting vulnerable groups through targeted subsidies and social safety nets.

The National Bank of Ethiopia (NBE) has published its latest annual financial disclosure, verified by an independent auditor, offering a detailed look into the country’s monetary trajectory over the past five years. The findings point to a dramatic 200 percent increase in money supply, raising concerns over inflation and macroeconomic stability.

One of the report’s key revelations is the NBE’s provision of ETB 700 billion in direct advances to the Ministry of Finance between 2019 and 2024. The volume of cash circulating in Ethiopia’s economy has more than doubled, climbing from around ETB trillion five years ago to ETB 2.7 trillion by the end of the last fiscal year in June 2024. This surge has fueled macroeconomic imbalances, prompting renewed calls for policy reform and tighter fiscal discipline.

Encouragingly, the current fiscal year marks a turning point. For the first time in recent years, the federal government has refrained from taking direct loans from the National Bank. The central bank has also implemented corrective measures to absorb excess liquidity, a move seen as part of a broader macroeconomic stabilization effort.