Ethiopian lawmakers approve close to 2 trillion birr federal gov’t budget for 2025/26 FY

Addis Ababa, July 3, 2025 (FMC) – Ethiopia’s House of Peoples’ Representatives (HoPR) unanimously approved the federal government’s 2018 E.C. (2025/26) fiscal year budget, amounting to 1.93 trillion birr.

The decision was made during the 42nd regular session of the fourth year of the House’s current term. The newly approved budget reflects a 34.4 percent increase compared to the previous fiscal year’s allocation.

Officials indicated that the budget was prepared in alignment with the government’s ongoing macroeconomic reform agenda and fiscal policy adjustments. It prioritizes advancing existing development projects, sustaining social protection subsidies, and ensuring the country’s debt sustainability through continued restructuring negotiations with creditors.

More than 80 percent of the approved expenditure will be financed through domestic revenue. The government also plans to boost its fiscal capacity by expanding the tax base—both by introducing new revenue sources and strengthening the current tax collection system.

Earlier in the session, which marked the culmination of the House’s regular meetings for the 2017 E.C. fiscal year, Prime Minister Abiy Ahmed (PhD) addressed members of parliament on the country’s economic direction and reform progress.

He responded to wide-ranging questions covering diplomacy, peace, regional integration, agriculture, industry, infrastructure, services, inflation, debt, and development.

While forwarding their queries to the Prime Minister during this morning’s parliamentary regular sitting, lawmakers commended the government’s results in areas such as food sovereignty, export performance, infrastructure expansion, and digital finance, ahead of casting their final vote on the proposed national budget.