Addis Ababa, February 24, 2026 (FMC) — A total of 71.33 billion birr in shared revenue was transferred to regional states during the first seven months of the 2018 Ethiopian fiscal year, the Speaker of the House of Federation announced.
The allocation was executed in accordance with the established shared revenue administration and transfer formula, reflecting ongoing reforms aimed at enhancing equity and efficiency in fiscal distribution.
Speaking at a consultative forum organized by the Subsidy Budget and Shared Revenues Standing Committee of the House of Federation yesterday, Speaker Agegnehu Teshager highlighted significant progress in strengthening the shared revenue system between federal and regional governments.
He noted that the recently reformed revenue-sharing formula has improved distribution mechanisms and supported greater financial coordination among state institutions.
The forum reviewed an audit report addressing the administration, collection, and transfer of shared revenues involving federal and regional stakeholders. According to the Speaker, systemic improvements have contributed to sustained growth in regional revenue allocations over the past five years.
He underscored the transformative impact of fiscal reforms, observing that regional shares have risen from 4.2 billion birr prior to the changes to 91.73 billion birr by the end of the 2017 fiscal year. The advancement reflects strengthened coordination between federal and regional authorities and supports broader national reform objectives.
The Speaker commended the contributions of the Ministry of Revenues and the Ministry of Mines for developing modern technological systems aligned with the new revenue formula, accelerating the transfer process and enhancing transparency.
He emphasized that royalty revenues from large-scale mining and petroleum resources — a critical component of shared income — have demonstrated notable growth. To sustain balanced development and address public needs, the Speaker called for expanded revenue streams and improved collection mechanisms.
A clear framework has also been established to ensure accountability through independent financial audits of royalty revenue transfers. Findings from previous audits conducted by the Federal Auditor General helped shape consensus on reporting standards and continue to inform institutional reforms.
The audit outcomes are expected to guide future administrative strategies for revenue management and fiscal governance. In support of these efforts, Hailu Ifa, Secretary of the Subsidy Budget and Shared Revenues Standing Committee, affirmed that the new revenue administration system is grounded in principles of transparency and efficiency.
He noted that implementation of the reforms has driven significant growth in both institutional performance and regional revenue allocations, reinforcing the objectives of equitable development and fiscal