Gov’t revenue and pro-poor spending grow more than fivefold in Ethiopia (2018–2025) – Finance Ministry

Addis Ababa, March 10, 2026 (FMC) – Ethiopia’s Ministry of Finance has reported significant fiscal policy and public finance achievements recorded between 2018 and 2025, highlighting growth in government revenue, pro-poor spending, and the modernization of public finance systems.

According to the Ministry, total government revenue increased more than fivefold during the period as a result of reforms aimed at improving public income. Government expenditure was also redirected toward poverty reduction and development priorities, leading to a similar more-than-fivefold rise in pro-poor spending.

The Ministry further noted that the government budget deficit declined substantially, falling from -2.5 percent to -0.9 percent of gross domestic product (GDP).

Efforts to strengthen budget credibility were also reported, with the Medium-Term Fiscal Framework (MTFF) reinforced to improve budget execution. Measures to stabilize inflation included halting direct borrowing from the National Bank of Ethiopia.

In addition, Ethiopia modernized its public finance administration through digital reforms, including the implementation of the Integrated Financial Management Information System (IFMIS), e-payment, e-procurement, and the Treasury Single Account (TSA).