Addis Ababa, July 13, 2025 (FMC) — The Addis Ababa City Council has formally approved an unprecedented budget of 350.13 billion Birr for the 2018 Ethiopian fiscal year, marking the largest allocation in the city’s history.
The approval was granted during the council’s 4th regular session of its 4th operational year.
Deputy Mayor and Finance Bureau Head Abdulkadir Redwan presented the comprehensive budget proposal, highlighting a remarkable increase of approximately 108 billion Birr — equivalent to a 45 percent growth compared to the previous fiscal year.
The budget designates 91.8 billion Birr for recurrent expenditures, allocates 246.3 billion Birr for capital projects, and sets aside 12 billion Birr for a contingency reserve fund.
Deputy Mayor Abdulkadir emphasized that the significant expansion in capital spending reflects the city administration’s firm commitment to people-centered development.
Key priorities include housing construction, corridor development, and other transformative urban infrastructure initiatives.
He further noted that the budget was carefully formulated in alignment with Addis Ababa’s strategic development vision, ongoing projects, and emerging urban demands.
The budget underscores priorities such as strengthening good governance, sustaining development momentum from recent years, modernizing service delivery within corridor projects, and expanding affordable housing development.
To finance the ambitious 2018 fiscal plan, the city intends to mobilize over 238 billion Birr through tax revenues, more than 56 billion Birr from municipal sources, upwards of 46 billion Birr from non-tax revenues, 1.8 billion Birr from the road fund, and approximately 7 billion Birr through foreign loans and grants.