Ethiopia Tables Nearly ETB Two  Trillion Budget For The Next FY

 The 35th regular session of the House of People’s Representatives began deliberations on Ethiopia’s draft budget for the upcoming 2025/2026 Ethiopian fiscal year.

Finance Minister Ahmed Shide presented the government’s proposal, outlining a record ETB 1.93 trillion budget. This represents a significant 34% increase compared to the previous year’s allocation. The minister justified the ambitious figure by citing substantial economic progress achieved during the current FY. 

In the budget speech, the Minister announced that ongoing macroeconomic reforms had successfully stabilized the economy, citing key achievements: an 8.5% economic growth rate, a sharp decline in inflation from 34.5% to 13%, and a record-high export revenue of $7.2 billion hailed as an unprecedented national milestone.

The finance minister detailed the government’s funding strategy for the proposed 2 trillion ETB budget. He projected that 1.5 trillion ETB (approximately 75%) would be sourced from domestic revenue streams combined with foreign aid and grants. The remaining balance, roughly 500 billion ETB, is expected to be covered through proceeds from government bond sales and securing foreign loans or credits.